financial results for the period ended july 2019 (15 fiscal period) · 2019. 9. 13. · financial...

Financial Results for the Period

Ended July 2019

(15th Fiscal Period)

September 13, 2019

1

Disclaimer

The contents of this document, including summary notes, quotes, data and other information, are provided solely for informational purposes of Kenedix

Residential Next Investment Corporation (KDR) and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell, any

specific products. When you invest, please make decision by your own judgements and responsibility.

Please be aware that matters described herein may change or cease to exist without prior notice of any kind. This document contains forward-looking

statements and anticipations of future results, based on current assumptions and beliefs in light of currently available information and resources. Risks and

uncertainties, both known and unknown, including those relating to the future performance of the real estate market in Japan, interest rate fluctuations,

competitive scenarios, and changing regulations or taxation, may cause KDR's actual results, performance, achievements and financial performance to be

materially different from those explicitly or implicitly expressed in this document.

With respect to any and all terms herein, including without limitation, this document, the information provided is intended to be thorough. However, no

assurance or warranties are given with respect to the accuracy or completeness thereof.

Neither KDR nor Kenedix Real Estate Fund Management, Inc. (KFM) shall be liable for any errors, inaccuracies, loss or damage, or for any actions taken in reliance

thereon, or undertake any obligation to publicly update the information contained in this document after the date of this document.

Revised editions of our annual reports will be posted on our website if there should be major corrections going forward.

2

Appendices

Residential Market Situation in Tokyo 23 wards and major cities in Japan p. 31-32

Tenant Demographics Analysis (Residential Facilities) p. 33

About Seismic Isolation Materials p. 34

Market expansion and Strong Demand for Healthcare Facilities p. 35

The Business Climate for Healthcare Facilities in Japan p. 36

Overview of Operators p. 37

Senior Housing and Senior Care Facility Operators Ranked by Number of Rooms p. 38

Classification of Senior Living Facilities p. 39

Status of Lease Agreements (Healthcare Facilities) p. 40

Typical Profit Structure for Senior Living Facilities p. 41

Operational Improvements p. 42

Unitholders’ benefit programs p. 43

Support System by Sponsor and Support Companies p. 44

Summary of Kenedix Group p. 45

Organization Chart of KFM (KDR) p. 46

Financial Statements p. 47-48

Appraisal Unrealized Capital Gains and NAV per Unit p. 49

Appraisal Values p. 50-55

Summary of Portfolio Performance p. 56

Portfolio Performance in 1H 2019 p. 57-62

Contents

1. Activities for further growth of unitholders’ value

Review After the Merger and Future Initiatives p. 5

Investment Unit Price and Sustained Growth p. 6

Portfolio Structuring Policy p. 7

To-be Acquired Properties and External Growth Pipeline p. 8

Rent Trends of Residential Facilities p. 9

Sustainability (1) - Initiatives for Environment - p. 10

Sustainability (2) - Initiatives for Social・Governance - p. 11

Changes to Asset Management Fee Structure p. 12

2. Financial Results (Actual Results for 15th Period and Outlook for 16th and 17th Period)

Income Statement for the Period Ended July 2019 (15th Fiscal Period) p. 14

Outlook for the Period Ending January 2020 (16th Fiscal Period) and the Period Ending July 2020 (17th Fiscal Period)

p. 15-16

Growth of Distributions per Unit (DPU) p. 17

3. Portfolio Overview

Portfolio Breakdown (1) p. 19

Portfolio Breakdown (2) p. 20

Occupancy Rates of Residential Facilities p. 21

Operational Status of Residential Facilities (1) p. 22

Operational Status of Residential Facilities (2) p. 23

Structured Plan for Major Renovations and Internal Growth p. 24

Operational Status of Healthcare Facilities p. 25

4. Finance

Finance p. 27-28

Unitholders p. 29

3

memo

5


Review After the Merger and Future Initiatives

Each of the following indicators was improved due to the merger and two consecutive public offerings

Growth of Distributions per Unit (DPU)

Transition to Next Stage Future Growth Targets by 2022

2018.3 2019.7

Growth and management of distributions

Build a Stable Portfolio

Further advances in KDR’s positioning in the J-REIT sector

Review after the merger

Future Initiatives

Aim to continue investing approximately ¥20 billion annually, mainly in Tokyo metropolitan area rental housing

Build portfolio mainly in Tokyo metropolitan area rental housing sector

Improve the quality of portfolio by continuously replacing assets

Aim to increase the credit rating consistently (A+) by improving financial stability

Aim to attract a broader range of investors through inclusion in more indexes and other measures

Targets

Growth of NAV Internal Growth Gain on Sale

NAV per unit¥153,716

¥170,844

Percentage for rent increase of new tenants

in the 15th period

+2.6%

Total gain on sale from the 13th to 15th

periods

¥842 mil

15th period

¥4,063/unit12th period¥3,473/unit

13th period¥4,026/unit

14th period¥4,039/unit

Increase rate

+17.0%

Before the merger 2019.7

Increase in Market Capitalization

Improvement of Financial Indicator

Increase in Asset Size

Inclusion in the Index

Inclusion in

FTSE EPRA/NAREIT Global Real Estate Index from Sep. 2018

LTV51.5% 49.4%

Asset Size¥164.1 bln ¥233.2 bln

Increase rate +42.1%

Market Capitalization¥109.0 bln ¥174.7 bln

Increase rate +60.2%

DPU (Stabilized)

¥4,000

Market Capitalization

¥200 bln

Asset Size

¥300 bln

(12th period ➡ 15th period)

Improvement of stability

Aim for the early achievement of the stabilized DPU of ¥4,000 through both external and internal growth

Continue to use gains on sales to increase the DPU Use internal reserves to increase the DPU consistently Reducing financial costs

Growth of unitholders’ value

6


140,000

150,000

160,000

170,000

180,000

190,000

200,000

2017/11 2018/2 2018/5 2018/8 2018/11 2019/2 2019/5 2019/8

投資口価格東証REIT指数東証REIT住宅指数

00

Investment Unit Price (After Announcement of the JSL Merger)

Investment Unit Price and Sustained Growth

Achievements since the

merger will lead to

further growth in the future

◼ After the Nov. 2017 merger announcement, the investment unit price has been steadily increasing following the two consecutive public offerings

◼ During the 15th period, unit price exceeded the Japan Senior Living Investment Corporation (JSL)’s issue price of ¥190,000 at IPO

(in yen)

KDR Investmentunit price

TSE REIT index TSE Residential REIT index

Announcement ofmerger

Nov. 10, 2017

Completion ofmerger

Mar. 1, 2018

Announcement of the PO (1)

Jul. 13, 2018

Announcement of the PO (2)

Feb. 4, 2019

PO (1)Issue Price¥157,047

PO (2)Issue Price¥175,500

JSL Issue Price at IPO

¥190,000

KDR achieved step-by-step growth since the merger with JSLAfter completing the transition phase from the merger to the NEXT stage, various measures for new growth were implemented in the 15th period.

<15th Period (1H 2019)>

Nov. 2017 Feb. 2018 May 2018 Aug. 2018 Nov. 2018 Feb. 2019 May 2019 Aug. 2019

Note: Tokyo Stock Exchange REIT Index and Tokyo Stock Exchange Residential REIT Index on the announcement date of the JSL merger of November 10, 2017 are indexed as the investment unit price (closing price) of KDR on the same date.

7


Investment Policy◼ KDR is dedicated to earning consistent income and achieving sustained growth by making investments in a broad range

of properties where people live and stay

Portfolio Structuring Policy

UseTarget Investment Ratio

in theManagement Guidelines

Current Investment

Ratio (1)

Target Investment Ratio When Asset

Size Reach ¥300 bln (2)

Residential Facilities At least 60% 76.5% Approx. 70-75%

Healthcare Facilities 30% or less 22.7% Approx. 20-25%

Accommodations 20% or less - Approx. 0-10%

Other 10% or less 0.7% Approx. 0-5%

Targets for Portfolio Weighting Based on Use

Continue StrategicAsset Replacements

The goal is maintaining and improving portfolio stability and growing consistently while investing primarily in residential facilities.

Aim to continue strategic asset replacements to increase growth of portfolio without limitations involving asset categories

-Policy for Property Sales-

Properties that will become less competitive in the future due to property characteristics and local market environment

For rental housing, the priority for sales is holdings other than properties in major metropolitan areas

Properties where profitability is expected to decrease, such as buildings where CAPEX is expected to increase in the future

（注）

Note 1: Percentages use prices of properties that include assets to be acquired by March 2020, which are already scheduled for as of the date of this presentation.

Note 2: This is a rough estimate for target investment ratio. The actual investment ratio may differ from the above ratio depending on the future market environment and other factors.

8


KDX Residence Nishi-Funabashi

KDX ResidenceHatagaya

KDX Residence Sendai Station East

Location(distance from the station)

Funabashi-shi, Chiba(4 min. walking from

Nishi-Funabashi station)

Shibuya-ku, Tokyo(6 min. walking from

Hatagaya station)

Sendai-shi, Miyagi(7 min. walking from

Sendai station)

Acquisition price

¥975 mln ¥2,500 mln ¥1,340 mln

Appraisal value ¥1,060 mln ¥2,710 mln ¥1,410 mln

Appraisal NOI cap rate (1) 5.0% 4.6% 5.0%

NOI cap rate after depreciation (1) 4.0% 4.1% 3.8%

Scheduled date of acquisition

September 17, 2019

Until February 28, 2020

Until March 12, 2020

Construction completion

January, 2011 January, 2002 February, 2019

◼ Plan to acquire two rental housing properties with strong internal growth in the Tokyo metropolitan area

◼ Plan to acquire a property in a prime location in a major regional area

Sponsor support

(Tentative name) Hatchobori Project

Location Chuo-ku, Tokyo

Rentable units About 40 to 50

Construction completion (scheduled)

August 2020

Sponsor support

Otsuka Ekimae HotelYokohama Sta. Nishiguchi

Hotel

LocationToshima-ku,

TokyoYokohama-shi, Kanagawa

Number of rooms

74 123


October 2018 November 2018

Asset management company’s channels

Rehabili Home Granda Kobe Kitano

Location Kobe-shi, Hyogo

No. of rooms 59


February 2016

Operator Benesse Style Care Co.,Ltd.

External Growth Pipeline◼ Aim for continuous external growth through various acquisition routes

and methods

Stable Pipeline Backed by Sponsor Support

To-be Acquired Properties and External Growth Pipeline

Summary of To-be Acquired Properties

From support company

(Tentative name) Minami Rokugo Project

Location Ota-ku, Tokyo

Rentable units 80

Construction completion (scheduled)

February 2020

Fixed Rent Fixed RentFixed Rent

TokyoMetropolitan

Area

TokyoMetropolitan

Area

TokyoMetropolitan

Area

Preferential Negotiation

Rights

TokyoMetropolitan

Area

TokyoMetropolitan

Area

TokyoMetropolitan

Area

Preferential Negotiation

Rights

Note 1: “Appraisal NOI cap rate” for to-be acquired properties is the net operating income (NOI) using the direct capitalization method in the appraisal reports divided by the planned acquisition price (before taxes). The “NOI cap rate after depreciation” is the NOI using the direct capitalization method in the appraisal reports minus estimated depreciation based on engineering reports prepared by Kenedix Estate Fund Management, Inc. (KFM) divided by the planned acquisition price (before taxes).

9


◼ The rental housing market environment is favorable in the Tokyo metropolitan area

◼ Current trends in new rent in Nagoya and Sendai are weak

Nagoya Area

Replacements (2.2)%

Sendai AreaReplacements (0.4) %

Rent Trends of Residential Facilities

Map for Rate of Changes in Rent (Jul. 31, 2019)

Entire Rate of Change

Replacements +2.6 %

Renewals +0.2 %

Tokyo Central 8 Wards

Other Tokyo Metropolitan Area

Tokyo Metropolitan Area

Replacements +3.6%

Renewals +0.2%

Sapporo Area

Replacements +2.0%

Replacements +3.9%

Renewals +0.3%

Replacements +3.0%

Renewals +0.2%

Osaka Area

Replacements +0.8%

9,987

10,004 10,020

10,066

9,980

9,990

10,000

10,010

10,020

10,030

10,040

10,050

10,060

10,070

2018年1月期平均 2018年7月期平均 2019年1月期平均 2019年7月期平均

(yen/tsubo)

Ave. of 2H 2017(12th)

Ave. of 1H 2018(13th)

Ave. of 2H 2018(14th)

Ave. of 1H 2019(15th)

Trends in Rent per Tsubo of Residential Unit (1)

Note 1: “Rent per Tsubo of Residential Unit by Area” is calculated for residential units of pass through contract (excluding contract for whole building) of 111 properties operated from August 1, 2017 to July 31, 2019. (1Tsubo = 35.5832 sq. ft.)

Total

◼ Increase in new rental income raised rent per tsubo of the entire portfolio

◼ Rent per tsubo for the entire portfolio was 0.62% higher than one year earlier

+0.33% YoY

+0.62% YoY

Fukuoka Area

Replacements +2.8%

10


KDX Residence Hanzomon

Sustainability (1) - Initiatives for Environment -

DBJ Green Building Certification(1) GRESB Real Estate Assessment

Note 1: “DBJ Green Building Certification” is a system established by Development Bank of Japan in April 2011 to support

real estate that meets environmental and social conditions.

Note 2: “Annual reduction” is calculated based on the presentation materials from construction company as of

exchanging construction.

7 residential properties are certificated. The Investment Corporation participates in GRESB Real Estate Assessment

from 2016 and acquired “Green Star” rating in 2019. (Rating is “2 Stars”)

GRESB (Global Real Estate Sustainability Benchmark) is a benchmark to evaluate

sustainability performance of private and listed real estate portfolio, etc. from

environmental and social perspectives.

Others

Outlets for recharging electric carsSecure Lockers for Deliveries

LED Lights in Common Areas(2)

Total

(after

2015)

Property (props) 46

Expense (mln yen) 78.7

Annual reduction (mln yen) 22.5

3 props112 props

Properties certificated DBJ Green Building

EV Point

Secure lockers for parcels eliminate the need for delivery companies to return to a property when a resident is not home the first time. This reduces transportation CO2 emissions and wasted working time for drivers.

Parking areas have outlets so that residents can easilyrecharge electric cars.

KDX Residence YotsuyaKDX Residence Ebisu Ashiya Royal Homes KDX Residence Toyosu

Serenite Kobe Motomachi KDX Residence Shukugawa Hills

Certification for the healthcare assets.

BELS Certification CASBEE Certification

Excellent NishinomiyaPlaisant Grand Ota tamagawa

BELS (Building-Housing Energy-efficiency Labeling

System) is the third-party certification system to

rate houses and buildings in accordance with duty

to make effort to label energy saving performance

in the Act on Improving Energy Consumption

Performance for Architectural Structures.

Comprehensive Assessment System for

Built Environment Efficiency (CASBEE) is a

method for evaluating and rating the

environmental performance of buildings

and the built environment.

ESG

UpdateJul. 2019

UpdateJul. 2019

NewJan. 2019

NewJan. 2019

Self-assessment based

on CASBEE was carried

out in November 2015,

and notification was

submitted to

Nishinomiya City.

Reduction of the amount of Energy used

Reduction Targets

FY2018(YoY change)

Energy Consumption

5 year/5％ total in intensity

Rate of change

-6.4％

The Asset Management Company has set long-term goalsconcerning reduction of the amount of energy used andpromotes initiatives leading to reduction of environmentalburden while continuously monitoring its efforts.

11


Sustainability (2) - Social and Governance Initiatives -

ESGESGSignificant Social Contribution as an REIT Investing in Healthcare Facilities

Decision-making Process with Transparency & Checks and Balances

KDR

・Diversified sources of funding

・Development of new healthcare facilities

・Stronger financial position

・Separation of ownership and management

(specialization in operation)

・Avoiding the risk of property ownership

・ Stability of facility owners

Capital Market Needs

◼ Play a role in supplying quality healthcare facilities◼ Play a role in the growth of investments in social funds

Needs of Operators

In Japan, a super-aging society, the shortage of healthcare facilities are urgent social issues. KDR believes that there is a growing need in society for REITs to purchase and manage healthcare facilities. By continuing to acquire these properties, KDR aims to meet this need. KDR also believes that the growth of ESG investments will create more opportunities for healthcare facilities to attract new investments.

・Investment for long-term stability

・Growing areas where demand is strong

・Variety of investment opportunities

・ Socially responsible investments

Investments in Childcare Facilities◼ Revision of the Management Guidelines (Sep. 2019)

Usage Asset Type Examples

Residential Facilities

Rental housingServiced apartments, etc.

Healthcare Facilities

Private senior homes, serviced housing for the elderly, Nursing and health facilities, etc.

Accommodation Hotels, etc.

OtherLand with leasehold interest,

Childcare facilities ,etc.

KFM creates guidelines for the management of KDR’s assets. The guidelines set forth basic policies on asset management, including the investment policy, related party transaction rules, the distribution policy and the disclosure policy.

Based on the management guidelines, KFM creates asset management plans and other plans (ex. medium-term plans, annual business plans). KFM makes decisions about property acquisitions in accordance with theinvestment policy and related party transaction rules in the management guidelines.

The following process is used in principle to make decisions about establishing and revising the managementguidelines, asset management plan and other items as well as about asset acquisitions and sales.

Residential REIT

Department

Proposal PreviewDeliberation

and Resolution

Deliberation and

Resolution

Deliberation and

ResolutionReport

Compliance Officer

Compliance Committee

Asset Management Committee in

Residential REIT

Department

KDR Board of Directors

KFM Board of Directors

Board of Directors:・The board consists of two executive directors (including one female) and three independent

supervisory directors・Supervisory directors have diverse backgrounds, such as legal, accounting and medical services

◼ Breakdown of AUM

The Kenedix Group’s Commitment to J-REITs

REIT¥1,540.0 bln

(70%)

Private funds¥600.8 bln

(27%)

Consolidated Real Estate¥71.7 bln

(3%)

AUM¥2,212.6 bln

REITs account for a large share of the Kenedix Group’s AUM. Stable growth of REIT AUM is a source of revenue for Kenedix, Inc. (the sponsor). These investments are also a business model in which the interests of Kenedix and the REITs are aligned.

◼ Investment in KDR by Kenedix, Inc.

Number of Units owned

16,570 units

Ownership

1.82%

(As of Jul. 31, 2019)(As of Jun. 30, 2019) As Japan is facing issues related to population structure, as part of its response to the declining birthrate and aging population, the need for childcare facilities is expected to continue. KFM believes that childcare facilities are asset classes with good prospects for growth. These properties can generate stable rental income that is reflected in the medium to long-term asset value of these facilities.

KFM revised its management guidelines to create social value through investments in childcare facilities that meet this need and to increase flexibility for targeting investment opportunities.

12


Business Period for Calculation 14th X th X+1 th

Percentage change of investment unit prices of KDR (a)

+10.9% +9.2% +10.9%

Percentage change of the TSE REIT Index (b) +6.9% +11.1% +6.9%

Vs. TSE REIT Index Performance (a)-(b) +4.0%

Rates for calculating fee 4.0% 0% +2.1%

Business Period for Realizing Fee 15th X+1 th X+2 th344

382

347

385

224

185

223

185

変更後

変更前

変更後

変更前

第1

7期

第1

6期

運用報酬Ⅰ 運用報酬Ⅱ

Increase in percentages linked to profit-performance to the extent that the total amount of the management fee is not materially affected (Estimated figures are calculated based on the assumptions for the forecasts for the 16th and 17th periods, which may not correspond to the actual amount of fee.)

◼ The fee linked to total assets (AM Fee I) was reduced and earnings per unit is now included in determining the fee based on performance (AM Fee II).

◼ In addition, we established the fee that is linked to the performance of investment unit prices (Management Fee III) to strengthen incentives for improving unitholders’ value.

Changes to Asset Management Fee Structure

Distributable amount × EPU × 0.00145%

Total assets at the end of the previous period × 0.3% (annual rate)

Asset Management Fee I

- Current -

Total assets at the end of the previous period × 0.27% (annual rate)

Asset Management Fee II

- After change -

Distributable amount × 5.0%

Outline of Revisions to Fee Rates and Newly Established FeesReduction in fee rates

linked to the total assets

Stronger linkage with earnings per unit

Asset Management Fee III

Newly established Vs. TSE REIT Index Performance × Total Market Capitalization × 0.15%

Linked to performance of investment unit prices

Estimates Based on New Rates, etc. Calculation of Management Fee III Rate

To strengthen the link between fees and unitholder returns

Vs. TSE REIT Index Performance = (a)-(b)(a) Percentage change of investment unit prices of KDR (incl. dividends) (b) Percentage change of the TSE REIT Index (incl. dividends)

The calculation is based on the last prices of the end of business day of the previous business period and the last business day of the month before previous business period.

In case of underperformance• Management fee III will not be generated when the investment unit price of KDR underperforms ((a)-(b) =negative)• Negative performance figures are carried over to the next business period and offset when the following period's performance

figures are positive. (Negative figures are carried over until the next business period.)

EPU is earnings per unit prior to the deduction of management fee II. The EPU is calculated by dividing the distributable amount calculated for each accounting period by the number of investment units outstanding for the relevant accounting period.

In light of seasonal fluctuations in the residential market and the cycle of economic activities, the performance evaluation period is substantially one year rather than six months (The figures for the 14th period is estimated numbers calculated based on investment unit prices, etc. at the past., all numbers are not actually applied.)

-1.9% +4.0%

(in millions of yen)

570

570

567

568

Management Fee I Management Fee II

Before

After

Before

After

16

th1

7th

Note: The change in AM Fee structure is supposed to take effect by resolution at the unitholders’ meeting scheduled on Oct. 30, 2019 and completion of other procedures. The change is scheduled to be effective from the period ending July 2020 (the 17th Period) or later.

2. Financial Results

(Actual Results for 15th Period and Outlook for 16th and 17th Period)

14


Income Statement for the Period Ended July 2019 (15th Fiscal Period)

2H 2018 1H 2019

(in millions of yen) Actual Forecast Actual Period on Period

Rent revenue – real estate 7,085 7,336 7,342 257 3.6%

Other lease business revenue 520 533 590 70 13.5%

Gain on sale of real estate property 203 202 203 0 0.1%

Dividends received 14 - - -14 -100.0%

Operating revenues 7,823 8,072 8,136 312 4.0%

Expenses related to rent business (ex. depreciation) 1,451 1,552 1,524 72 5.0%

Depreciation 1,343 1,394 1,391 48 3.6%

Other operating Expenses 815 862 861 46 5.7%

Operating expenses 3,610 3,809 3,777 167 4.6%

Operating income 4,213 4,263 4,358 145 3.5%

Non-operating income 0 0 1 0 250.0%

Non-operating expenses 614 619 618 3 0.6%

Ordinary income 3,599 3,643 3,741 142 4.0%

Net income 3,598 3,643 3,741 142 4.0%

RTA compensation (accumulation) 20 20 20 - -

Earnings surpluscompensation (accumulation) (108) (6) (74) 34 -

Dividends 3,510 3,657 3,687 176 5.0%

Distribution per unit (yen) (2) 4,039 4,030 4,063 24 0.6%

Major Components (1) Major Components (1)

Actual vs Forecast

6 0.1%

56 10.7%

0 0.3%

- -

63 0.8%

-27 -1.8%

-2 -0.2%

-1 -0.1%

-31 -0.8%

95 2.2%

0 242.7%

-1 -0.2%

97 2.7%

97 2.7%

- -

-68 -

29 0.8%

33 0.8%

(R) Increase in leasing-related fees +23

Start of recording expenses for property, city planning and other taxes on the properties acquired in 2018

+66(R) Decrease in leasing-related fees -29

(R) Increase in key money and renewal fees, etc.

+18

(R) Insurance payments and other one-time revenue

+22

Increase due to acquisition of new properties in 1H 2019 +47

Increase in asset management fees mainly due to increased assets +49

Decrease in interest expenses mainly due to the difference in the number of applicable days

-3

Increase in investment unit issuance costs +6

Maximum retained earnings as long as no taxes are incurred

Note 1: (R) is components that are only for residential facilities and (H) is components that are only for healthcare facilities.Note 2: Distribution per unit is calculated based on the number of investment units issued and outstanding totaled 869,133 as of January 31, 2019 and 907,458 as of July 31.

Increase due to acquisition of new properties +247

(R) Increase mainly due to higher rent at existing properties

+22

(H) Full fiscal-period contribution of PlaisantGrand Ota Tamagawa acquired in 2H 2018

+25

(R) Decrease due to sale of KDX Residence Kotodai and Shin-Osaka

-38


+55

(R) Insurance payments and other one-time revenue +21

NOI 6,154 6,317 6,408 254 4.1%

91 1.4%

(R) Average occupancy rate: 96.4% (R) Average occupancy rate: 96.6%

15


1H 2019 2H 2019

(in millions of yen) Actual Forecast Period on Period

Rent revenue – real estate 7,342 7,440 98 1.3%

Other lease business revenue 590 512 -77 -13.2%

Gain on sale of real estate property 203 - -203 -100.0%

Dividends received - - - -

Operating revenues 8,136 7,953 -183 -2.3%

Expenses related to rent business (ex. depreciation) 1,524 1,484 -40 -2.6%

Depreciation 1,391 1,426 34 2.5%

Other operating expenses 861 898 36 4.2%

Operating expenses 3,777 3,808 31 0.8%

Operating income 4,358 4,144 -214 -4.9%

Non-operating income 1 0 -0 -70.8%

Non-operating expenses 618 644 25 4.1%

Ordinary income 3,741 3,500 -241 -6.4%

Net income 3,741 3,500 -241 -6.4%

RTA compensation 20 20 - -

Earnings surplus compensation (accumulation) (74) 167 241 -

Dividends 3,687 3,687 0 0.0%

Distribution per unit (yen) (2) 4,063 4,064 1 0.0%

Outlook for the Period Ending January 2020 (16th Fiscal Period) and the Period Ending July 2020 (17th Fiscal Period) (1/2)

1H 2020

Forecast Period on Period

7,509 69 0.9%

557 44 8.7%

- - -

- - -

8,067 114 1.4%

1,552 67 4.6%

1,441 15 1.1%

910 12 1.4%

3,904 95 2.5%

4,162 18 0.4%

0 - 0.0%

658 14 2.2%

3,504 3 0.1%

3,504 3 0.1%

20 - -

164 -3 -

3,688 0 0.0%

4,065 1 0.0%

Major Components (1) Major Components (1)

Increase in interest expenses and borrowing related expenses mainly due the difference in the number of applicable days and new borrowings

+24

Full fiscal-year contribution of 6 properties acquired in 1H 2019

+94

(R) Increase/decrease due to acquisition of Nishifunabashi /sales of a property

+13

(R) Decrease in revenue from existing properties

-9

(R) Decrease in leasing-related fees -23

Decrease in repair expenses -32

Increase due to acquisition of new properties in 1H 2019 and 2H 2019

+24

(R) Increase in leasing-related fees +31Start of recording expenses for property, city planning and other taxes on the properties acquired in 2019

+22

Increase in repair expenses +17

Increase due to acquisition of new properties in 2H 2019 and 1H 2020

+15

Increase in consumption tax due to the consumption tax rate hike from 8% to 10% +21

Increase in asset management fees mainly due to increased assets

+8

Increase in consumption tax due to the consumption tax rate hike from 8% to 10%

+13

Increase in interest expenses and borrowing related expenses mainly due to new borrowings

+14

Reversal of retained earnings (¥167 mln) to partially fund unitholder distributions

(R) Decrease in key money and renewal fees, etc.

-47

(R) Decrease in insurance payments and other one-time revenue

-22

(R) Increase/decrease due to acquisition of properties /sales of a property +54

(R) Increase in revenue from existing properties +15

NOI 6,408 6,468 60 0.9% 6,515 46 0.7%

(R) Anticipated occupancy rate: 96.0% (R) Anticipated occupancy rate: 96.2%

Reversal of retained earnings (¥164 mln) to partially fund unitholder distributions


+45

Note 1: (R) is components that are only for residential facilities and (H) is components that are only for healthcare facilities.Note 2: Distribution per unit is calculated based on the number of investment units totaled 907,458.

16


1,200

1,250

1,300

1,350

1,400

1,450

1,500

1,550

Outlook for the Period Ending January 2020 (16th Fiscal Period) and the Period Ending July 2020 (17th Fiscal Period) (2/2)

2H 2018(14th)Actual

1H 2019(15th)Actual

2H 2019(16th)

Forecast

1H 2020(17th)

Forecast

1,257

1,424

1,4991,481

-36 +34

-7

-16Start of recording expenses for property, city planning and other taxes on the properties acquired in 1H2018

Full fiscal-period contribution of Plaisant Grand Ota Tamagawa, etc.

Increase in repair expenses, etc.


Existing propertiesExisting propertiesExisting properties Acquisition

Note: All figures for “Residential Facilities” include “Others” (1 property which is on land with leasehold interests).

+168

Acquisition of Tsukui Sunshine Machida, SerabiEbisu, and AruteIshiyagawa

Full fiscal-period contribution of properties acquired in 2H2018

+82-1

Increase in repair expenses, etc.

4,850

4,900

4,950

5,000

5,050

5,100

2H 2018(14th)Actual

1H 2019(15th)Actual

2H 2019(16th)

Forecast

1H 2020(17th)

Forecast

+81

+66

4,896

4,9844,969

5,033

-26 +17

Rent growth, and increase in one-time revenue in peak season, etc.

Acquisition of KDX Residence - Kamikitazawa, - Kaminoge, - Higashi-Asakusa

Decrease in revenue due to renovations; decrease in one-time revenue in off-peak season, etc.

+16

Higher rent revenue, and increase in one-time revenue in peak season, etc.

+82Aim for further internal growth

Acquisition of KDX Residence Nishi-Funabashi

Existing properties

Aim for further internal growth

Sale of KDXResidence Kotodai (2H2018) and KDXResidence Shin-Osaka (1H 2019)

-30

-5

Sale of 1 property

Sale of 2 properties (2H 2019 and 1H2020)

Acquisition ofKDX Residence - Nishi-Funabashi, - Hatagaya,- Sendai Station East

-28

Existing properties Existing propertiesAcquisition Disposition Acquisition Disposition Acquisition Disposition

-29

Start of recording expenses for property, city planning and other taxes on the properties acquired in 1H 2018


-6

Change in NOI for Residential and Healthcare Facilities (Note)





17


3,796

3,880

3,843 3,861

3,600

3,700

3,800

3,900

4,000

4,100

Growth of Distributions per Unit (DPU)

Trend of DPU

1H 2019 (15th)

(Actual)

2H 2019(16th)

(Forecast)

1H 2020(17th)

(Forecast)

4,039

4,063 4,064 4,065

(in yen)

2H 2018 (14th)

(Actual)

3,8643,891

Impact of consumption

tax hike¥(21)/unit

Impact of consumption

tax hike¥(30)/unit

(注2)

(注1)

(注3)

4,000

DPUTarget

(Stabilized)

Increase in revenues due to residential

facilities rent growth and one-time revenues, etc.

More revenues by acquiring new

properties

2022

E

I

■Amount of internal reserves End of 15th period Amount per unit

Retained earnings brought forward ¥458 mln ¥505/unit

Reserve from gains on sales ¥297 mln ¥328/unit

Balance of RTA ¥1,960 mln ¥2,159/unit

0

Reduction in financial costs due to refinancing F

xternal growth

nternal growth

inancial strategy

Effect of property, city planning and other

taxes and other one-time factors

¥122/unit

DPU excluding one-time factors

¥29/unit

¥ 25/unit¥ 11/unit

Unitholder distribution from gains

on sales

¥122/unit

¥154/unitGain on

sales/reversal of internal reserves

¥196/unit

Gain on sales/reversal

of internal reserves

¥193/unit

◼ Residential facility internal growth contributes to higher dividends and KDR’s overall growth

◼ Maintain a high level of distributions in and after the 16th period through the constant sales of properties and utilization of internal reserves

The use of residential facility internal growth as the main driver

for achieving the DPU target in ahead of schedule

Note 1: “DPU excluding one-time factors“ = DPU forecast – Gains from property sales used for distributions (forecast) – The effect of property, city planning and other taxes and other one-time factors. Those for the 16th fiscal period and afterward are estimates as of the date of this presentation. KDR makes no guarantee that these funds will be distributed to unitholders.

Note 2: The “effect of property, city planning and other taxes and other one-time factors” is a benefit resulting from the delay in the recognition of these taxes as an expense to the fiscal period following the acquisition of a property and fluctuations in asset management fees in each fiscal period caused by changes in total assets.

Note 3: “Reversal of internal reserves” is the estimated amount as of the date of this presentation and the actual amount may differ due to future gains on sales and changes in revenues, etc.

19



22.7%

(24 props.)


76.5%

(121 props.)

Portfolio Breakdown (1)

◼ Total Asset Size：¥238.0 bln (146 props.), Residential facilities：¥183.9 bln (122 props.), Healthcare facilities ¥54.1 bln (24 props.) , and diversified portfolio

◼ Build a strong portfolio through investments with diversified in Residential facilities, such as locations and housing types, as well as in Healthcare facilities operators


Other0.7% (1 prop.)

Use

Entire Portfolio

Rental Housing:

98.4%(118 props.)

Use Breakdown for the Residential Facilities

Rent Guarantee9.0% (5 props.)

Company Rental Housing1.1% (2 props.)

Serviced Apartment0.5% (1 prop)

Studio

39.8%

Small Family

37.5%

Family

22.7%

Well-balanced ratio forthe Room type

Note 1: Including the ratio of the to-be acquired assets by March 2020, which are already scheduled for as of the date of this material. the same shall apply hereinafter.Note 2: “Rent guarantee” is contract with rent guarantee structure in part of whole residence.

(2)

23%

13%

12%9%

7%

7%

6%

5%

4%

3%

3%3%

2% 2% 2%

Care 21

Private senior homes(with nursing care)

68.7%(14 props.)

Private senior homes (residential)

7.2%(4 props.)

Serviced senior housing

2.5% (1 prop.)

Nursing and health facilities

21.5% (5 props.)

Diversification for the facility type

Japan Care Link

Diversification for the Operators

15 firms Tsukui Corporation

HakusinkaiMedical Corporation

Trust GardenNichii Carepalace

NM Life

HITOWA Care Service

NOTE Social Welfare

Sompo Care

Excellent Care System

Silver TownBenesse Style Care

Community NetSawayaka Club

20


Osaka Metropolitan Area

44.9%

Others2.5％

Other Regional Areas

11.3%


41.3%

Residential Facilities Healthcare Facilities

Break down of Property Age (2)

Note 1: “Tokyo Metropolitan Area” includes Tokyo, Kanagawa, Saitama and Chiba. “Other Regional Areas” include government-designed municipalities and other regional cities. “Tokyo Central 8 Wards” include Minato-ku, Shibuya-ku, Chuo-ku, Chiyoda-ku, Shinjuku-ku,

Meguro-ku, Setagaya-ku and Shinagawa-ku. “Osaka Metropolitan Area“ includes Osaka, Kyoto, Nara, Hyogo and Shiga. “Three Major Metropolitan Area” includes Tokyo Metropolitan Area, Osaka Metropolitan Area and Nagoya Metropolitan Area. “Other Regional Areas” include

regional cities excluding the three majormetropolitanarea.

Note 2: “Property age” is calculated by the weighted average by the acquisition price of the periods from completion dates to July 31, 2019.


Tokyo Central8 Wards

38.4%

Tokyo 23 Wards

21.8%

OtherRegional Areas

31.8%Tokyo

Metropolitan Area

68.2%Other Tokyo

Metropolitan Area

8.0%


AreaEntire Portfolio


62.3%

Other0.6%

OtherRegional Areas

37.1%

Three MajorMetropolitan Area

86.1%

as of the end of the last period

30.8%


67.3%


(as of end of January, 2019)

60.2%

Residential Facilities Healthcare Facilities

Under 10 yrs

13.4%

10-20 yrs

75.0%

Over 20 yrs11.6%

Average

13.3 yrs

Under 10 yrs

51.8%

10-20 yrs

20.6%

Average

14.3 yrs

Over 20 yrs

27.7%

Entire PortfolioAverage

13.5 yrs

Under 10 yrs

22.2%

10-20 yrs

62.5%

Over 20 yrs

15.3%

Tokyo Metropolitan area ratio in residential facilities

Aim for more than 70％

21


90.0%

92.5%

95.0%

97.5%

100.0%

90.0%

92.5%

95.0%

97.5%

100.0%

Occupancy Rates of Residential Facilities

Note 1: Occupancy Rates by Area include those from stores and offices. Occupancy Rates by Room Type are calculated for residential units of pass through contract (excluding contract for whole building).

Ave. of 1H 2018

97.0%

Average of period 13th Period (1H 2018) 14th Period (2H 2018) 15th Period (1H 2019)

7th 8th 9th 10th 11th 12th Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul.

Total 95.8 95.4 96.3 95.7 96.7 96.7 97.0 97.8 97.1 96.6 96.7 96.8 96.4 96.8 96.7 96.2 96.1 96.7 96.9 97.3 96.2 95.6 95.9 96.4

Tokyo Metropolitan Area 95.8 96.0 96.7 96.1 97.4 97.6 97.8 98.3 97.9 97.9 98.0 97.7 97.3 97.6 97.7 97.6 97.7 98.0 98.5 98.6 98.0 97.5 98.0 98.0

OtherRegional Areas 95.9 94.8 95.9 95.4 96.0 95.7 96.0 97.1 96.3 95.2 95.2 95.8 95.4 95.9 95.6 94.7 94.4 95.3 95.2 96.0 94.2 93.4 93.7 94.6

Ave. of 2H 2018

96.5%Ave. of 1H 2019

96.4%

Average of period 13th Period (1H 2018) 14th Period (2H 2018) 15th Period (1H 2019)

7th 8th 9th 10th 11th 12th Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul.

Studio 96.7 95.4 96.3 94.9 97.0 97.0 96.9 98.6 97.4 97.0 97.5 97.4 97.2 97.4 97.2 96.9 96.6 97.3 97.5 98.5 97.4 97.3 97.8 97.7

Small Family 94.5 94.7 95.8 95.3 95.9 95.6 96.3 96.8 95.7 95.5 95.5 95.5 94.9 95.4 95.4 94.9 95.0 95.5 96.0 96.7 95.0 94.0 95.0 95.4

Family 95.6 94.9 95.6 95.3 96.5 97.0 97.3 97.7 98.0 96.5 96.3 97.0 96.3 96.7 96.5 95.7 95.3 96.1 96.2 96.1 94.9 94.2 93.7 95.0

Occupancy Rates by Area(1)

Occupancy Rates by Room Type(1)

22


(thousand yen)

279 278 204 142 185152

323

-61 -1 -34 -19 00

-3 0

141 278 244185 142 185 149

323

-500

-250

0

250

500

Increase/Decline of monthly rentRent Increase/Decline

Increase Decline Net

0.1%

0.3%

0.4%

0.2%0.2%

0.2% 0.2% 0.2%0.2%

0.1%

0.0%

0.0%

0.0%0.0% 0.0%

0.1%

0.1%0.2%

0.2%

0.1% 0.1% 0.1% 0.1%0.2%

-0.3%

0.3%

東京経済圏地方経済圏全体

2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019

Increase/Decline of monthly rent by areaPercentage of Increase/Decline of rent of Renewal tenants (2)

2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019

Percentage of Increase/Decline of rent of new tenants (1)

1,1491,628 1,427

2,1811,530

2,222 2,243

2,881

-1,790 -1,217 -1,355-1,129 -924 -885 -527 -420

-641

41172

1,052606

1,3371,716

2,461

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

-0.2%

0.9% 0.9%

1.5% 1.3%

2.1%

2.7%

3.6%

-1.7% -0.3%

-1.3%

0.4%

-0.3%

0.3% 0.4%

1.1%

-0.9%

0.5%0.1%

1.1%0.7%

1.4%

2.0%

2.6%

-2.0%

1.0%

4.0% 東京経済圏地方経済圏全体

Operational Status of Residential Facilities (1)

Note 1: “Percentage of Increase/Decline of rent of new tenants” = Total Amount of Increase/Decline of rent of new tenants / Total amount of rent before revisions.

Note 2: “Percentage of Increase/Decline of rent of renewal tenants” = Total Amount of Increase/Decline of rent of renewal tenants / Total amount of rent before revisions.

Increase/Decline of monthly rent by area

Tokyo

Metropolitan

Area

Other

Regional AreasAll Areas

Increase/Decline of monthly rentRent Increase/Decline

(thousand yen)

Increase Decline Net

2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019

Tokyo

Metropolitan

Area

Other

Regional Areas All Areas

2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019

23


2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019

Renewal Rate(2)

6.3% 7.4% 8.8% 5.6% 4.6% 4.7% 5.2% 6.5%

93.1% 92.5% 90.8% 94.3% 95.4% 95.3% 94.7% 93.5%

0.5% 0.1% 0.4% 0.1% 0.0% 0.0% 0.1% 0.0%

0%

25%

50%

75%

100%

2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019

Rent Increase/Decline (units)

Proportion of units Increase Stay Decline

Average Downtime/Turnover Rate(1)

39.8%52.2% 48.2%

54.9% 52.0% 57.2% 63.2% 69.2%

16.0%

19.3%20.1%

20.0% 22.4%21.4%

20.2%19.4%44.2%

28.5% 31.7%25.1% 25.6% 21.4% 16.7% 11.4%

0%

25%

50%

75%

100%

Rent Increase/Decline (units) of new tenants

Proportion of units

2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019

Increase Stay Decline

Average downtime

80

days

64

days

80

days

64

days

69

days

56

days

70

days

65

days

Operational Status of Residential Facilities (2)

9.8%

13.5%

10.2%

12.6%

10.7%

13.0%

10.3%

12.1%

8.5%

10.5%

12.5%

14.5%

第8期第9期第10期第11期第12期第13期第14期第15期

全体

Peak Season

89.5%89.3%

89.6%

88.8%

90.3%

89.7% 89.7%

91.2%

88.0%

90.0%

92.0%

第8期第9期第10期第11期第12期第13期第14期第15期

全体

2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019

Note 1: “Turnover Rate”= Exiting tenants during the period / Rentable units at the End of Period. These figures are calculated for residential units of pass through contract (excluding contract for whole building).

Note 2: “Renewal rate” = Renewal tenants during the period / Ending contracts during the period. These figures are calculated for residential units of pass through contract (excluding contract for whole building).

Turnover Rate

Renewal Rate

24


The number of properties and the average property age are the figures for major renovations.

B-Site AkihabaraKDR and Space Design agreed on a rent increase to reflect trends in nearby areas of Tokyo and on higher rent during the Tokyo Olympics, when strong demand is expected

858 878 885 922

1,144

1,343 1,391

1,426 1,442 1,444 1,444

第9期第10期第11期第12期第13期第14期第15期第16期第17期第18期第19期

211 208 234 228 290 319 301 268 285 282 305

164 221 241 286

437

615 612 642 624 645 621

16.5

20.1

21.4

16.215.3 15.4

16.7

15.1

0

5

10

15

20

25

0

200

400

600

800

1,000

1,200

1,400

1,600

第9期第10期第11期第12期第13期第14期第15期第16期第17期第18期第19期

修繕費資本的支出平均築年数（右軸）

KDX Residence Denen Chofu

Structured Plan for Major Renovations and Internal Growth

（百万円）

Renovation PerformedConstruction

period

Increase rate of Rent for new

tenants

Averagedowntime after

renovation

KDX Residence Denen ChofuRenovations of Kitchen and

bathroom and other facilities

2H 2018(14th period)

+6.4% 12 days

Structured Plan for CAPEX Construction etc. Renovations and Other Measures for Internal Growth

Implement Major Renovation on exterior walls etc. at timely manner for properties those are about 15 to 20 years old

Plan

減価償却費

CAPEX and repairs are based on a well-structured plan in order to maintain andimprove the competitiveness of properties

Continuous major renovation at properties that have reached a certain age

（年）

At some units, renovations and other measures are conducted after a tenant leaves with the goal of achieving a steady improvement in the performance of these buildings

2

4

2

3

4 4

6

7

In the construction After

KDX Residence Yotsuya Joy Stage Hachioji

Repairs(millions of yen)

CAPEX Avg. Property Age (RHS)Number of theproperties

Depreciation(years)

9th

Period10th

Period11th

Period12th

Period13th

Period14th

Period15th

Period16th

Period17th

Period18th

Period19th

Period

AfterBefore

Contract Revision for Internal Growth

Merger

PO PO

Lessee Space Design Inc.

Rental Period February 5, 2020 to February 4, 2022

Rent

4,140,000 yen per month (Rent is about 4% higherthan the Current lease agreement)The rent for the nine-month period from March 2020 to November 2020 will be 4,590,000 yen per month.

Contract format Fixed-term Building Lease Agreement

Major renovations when a building reaches age 20

Renovations of kitchens, bathrooms and other facilities with the propertiming have made our residential

properties more competitive

Following the termination of a lease agreement, KDR concluded a new fixed-term lease agreement to increase rent.

25

4. Operational Status ～Healthcare Facilities～

4,870 4,8165,153 5,276

5,707 5,786

38.2% 39.4% 39.0% 37.5% 37.0% 36.3%

0.0%

10.0%

20.0%

30.0%

40.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

2016年12月

（6ヶ月間）

2017年6月

（6ヶ月間）

2017年12月

（6ヶ月間）

2018年6月

（6ヶ月間）

2018年12月

（6ヶ月間）

2019年6月

（6ヶ月間）

83.5% 83.3% 84.7% 85.9% 86.6%89.5%

87.1% 87.4%89.9%

93.3% 93.7% 93.8%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2016年12月

（6ヶ月間）

2017年6月

（6ヶ月間）

2017年12月

（6ヶ月間）

2018年6月

（6ヶ月間）

2018年12月

（6ヶ月間）

2019年6月

（6ヶ月間）

平均入居率（シニアリビング施設）平均利用率（老健施設）

1.22 1.21

1.36

1.42 1.42

1.45

27.3%27.6%

25.8%25.3% 25.4%

25.0%

22.0%

24.0%

26.0%

28.0%

30.0%

1.10

1.20

1.30

1.40

1.50

2016年12月

（6ヶ月間）

2017年6月

（6ヶ月間）

2017年12月

（6ヶ月間）

2018年6月

（6ヶ月間）

2018年12月

（6ヶ月間）

2019年6月

（6ヶ月間）

賃料負担力（EBITDAR/賃料）(左軸)

売上高賃料比（賃料/売上高合計）(右軸)

85.585.8 85.7

85.4 85.6

86.3

1.7 1.7 1.7 1.7 1.7 1.7

3.1 3.2 3.1 3.1 3.1 3.2

1.0

2.0

3.0

4.0

80

81

82

83

84

85

86

87

2016年12月

（6ヶ月間）

2017年6月

（6ヶ月間）

2017年12月

（6ヶ月間）

2018年6月

（6ヶ月間）

2018年12月

（6ヶ月間）

2019年6月

（6ヶ月間）

平均年齢（シニアリビング施設）平均要介護度（シニアリビング施設）平均要介護度（老健施設）

Capacity to Pay Rent and Ratio of Rent to Sales (1, 2, 5)

Operational Status of Healthcare Facilities

Sales and Share of Compensation (1, 2, 4)


Sales (Total) Share of compensation (Senior living facilities)

Average Age and Nursing Care Level (1, 2)Occupancy Trend (1, 2, 3)

Average occupancy rate (Senior living facilities)

Average utilization rate(Nursing and health facilities)

Jun. 2018(six-month period)

Dec. 2016(six-month period)














Average age(Senior living facilities)

Average nursing care level(Senior living facilities)

Average nursing care level(Nursing and health facilities)

Note 1: Figures are based on materials submitted by operators. “Senior living facilities” include private senior home with nursing care, residential private nursing homes, and serviced senior housing held by KDR at the end of the 15th period, excluding “Granda Mondo Yakujin” “Tsukui Sun-shine Machida”(undisclosedproperty). “Nursing and health facilities” include nursing and health facilities held by KDR at the end of the 15th period. For “Plaisant Grand Ota tamagawa ”, “Serabi Ebisu”, and “Arute Ishiyagawa”, those figures from the time when the operator's approval was obtained are reflected in the calculation.

Note 2: “Average occupancy rate,” “Average utilization rate,” “Sales,” “Share of compensation,” “Capacity to pay rent,” and “Ratio of rent to sales” are calculated using cumulative figures for each six-month period. “Average age” and “average nursing care level” are figures at the end of respective month.Note 3: “Average occupancy rate” is the simple average of occupancy rate at the end of month for each period. “Average utilization rate” is the total number of users in the fiscal period divided by the total rated capacity.Note 4: “Share of compensation” is the ratio of compensation to sales at senior living facilities.Note 5: “Capacity to pay rent” is EBITDAR (= Operating Income + Depreciation + Rent) divided by the Rent.




Capacity to Pay Rent (EBITDAR/Rent) (LHS)

Ratio of Rent to Sales (Rent/Sales) (RHS)







4. Finance

27

4. Finance

53.7%

46.3% 46.7% 46.8%

48.9% 48.9%

51.5%

49.7%50.3%

49.4%

46.0%

45.0%

50.0%

55.0%

60.0%

4.65.2

4.5 4.7 4.4

1.19%

1.10% 1.08%

0.99% 0.98%

0.0

2.0

4.0

6.0

8.0

10.0

0.60%

0.80%

1.00%

1.20%

1.40%Lender

Amount

(¥mln)Ratio

■Sumitomo Mitsui Banking

Corporation33,400 26.5%

■MUFG Bank, Ltd. 26,100 20.7%

■Mizuho Bank, Ltd. 11,450 9.1%

■Aozora Bank, Ltd. 10,150 8.1%

■Resona Bank, Ltd. 8,400 6.7%

■Development Bank of Japan Inc. 8,000 6.4%

■ Shinsei Bank, Ltd. 7,750 6.2%

■Mizuho Trust & Banking Co., Ltd. 6,000 4.8%

■Sumitomo Mitsui Trust Bank,

Limited.5,950 4.7%

■Nippon Life Insurance Company 1,700 1.4%

■Sompo Japan Nipponkoa

Insurance Inc.1,000 0.8%

■ THE BANK OF FUKUOKA, LTD. 1,000 0.8%

■ Investment Corporation Bonds 5,000 4.0%

125,900

Finance 1/2

(yrs)

Key Debt Indicators (1)Average interest rate Average remaining term (RHS)

Jul. 31, 2017

(11th period)

Jan. 31, 2018

(12th period)

Jul. 31, 2018

(13th period)

Jan. 31, 2019

(14th period)

Jul. 31, 2019

(15th period)

Rate of

fixed-interest

94.3%

Jan. 31,

2015

Jul. 31 Jan. 31,

2016

Jul. 31 Jan. 31,

2017

Jul. 31 Jan. 31,

2018

July. 31, Jan. 31,

2019

July. 31,

2019

LTV (based on total assets)(2)

LTV Appraisal LTV

LTV target：50～55%

Credit Rating

Note 1: “Average interest rate” calculated by weighted average interest rate at the end of the period that took into

consideration up-front fee (per year) and the effect of the interest rate swap. “Average remaining term”

calculated by weighted average remaining term of interest-bearing liabilities at the end of the period. “Rate of

fixed-interest” calculated the percentage of fixed interest rate loans of total amount of loans at the July 31, 2019.

The floating loans which are substantially fixed with interest rate swap are included in the fixed-rate.

Note 2: “LTV” = Interest-bearing Liabilities / Total Assets. “Appraisal LTV” = Interest-bearing Liabilities / Total Appraisal

Value.

Status of Interest-bearing Liabilities (as of July 31, 2019)

Total amount

¥125.9 bln

Number of Lenders

12

26.5%

20.7%

9.1%

4.7%

6.2%

6.4%

4.0%

4.8%

A+(Outlook : Stable)

(Japan Credit Rating Agency, Ltd. (JCR))

8.1%

6.7%

28

4. Finance

3,050

1,500

500

800

400 2,000

500

1,500

1,000

500

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

第15期（19/7期）第16期（20/1期）第17期（20/7期）第18期（21/1期）第19期（21/7期）第20期（22/1期）第21期（22/7期）第22期（23/1期）第23期（23/7期）第24期（24/1期）第25期（24/7期）第26期（25/1期）第27期（25/7期）第28期（26/1期）第29期（26/7期）第30期（27/1期）第31期（27/7期）第32期（28/1期）第33期（28/7期）第34期（29/1期）第35期（29/7期）

Classification Amount Term(1) Average interest rate (2)

Refinance in Feb. 2019 ¥1.5 bln 1.2 yrs 0.44%

New Loans in Jun. 2019 ¥2.9 bln 6.0 yrs 0.62%

Refinance in Jul. 2019 ¥2.8 bln 2.3 yrs 0.40%

Feb. 2019 Refinance Jun. 2019 New loans Jul. 2019 Refinance Investment Corporation Debt Other existing loans

Finance 2/2

Repayment Terms

Note 1: “Average interest rate” calculated by weighted average interest rate at the end of the period for the each loans.

Note 2: “Interest rate” calculated that took into consideration up-front fee (per year) and the effect of the interest rate swap.

Latest New Loans and Refinance

（¥ million）

Jul.

2019

Jan.

2020

Jul. Jan.

2021

Jul. Jan.

2022

Jul. Jan.

2023

Jul. Jan.

2024

Jul. Jan.

2025

Jul. Jan.

2026

Jul. Jan.

2027

Jul. Jan.

2028

Jul. Jan.

2029

4.0 y

6.0 y5.5 y

Outline of Commitment Line Agreement (as of July 29, 2019)

CounterpartyLimit of

maximum amountContract period

Sumitomo Mitsui Banking Corporation

¥1.5 bln

August 1, 2019 toJuly 31, 2020MUFG Bank, Ltd ¥1.5 bln

Mizuho Bank, Ltd ¥1.5 bln

To secure flexibility and stability in financing

method, execute new commitment line

agreement

1.0 y 1.5 y

3.5 y1.0 y

6.5 y

29

4. Finance

10.0% 11.7% 10.0% 8.9%

70.1% 70.6% 69.0% 64.7%

15.7% 12.7% 16.0%19.3%

3.7% 4.1% 3.6% 3.4%

0.4% 1.0% 1.4% 3.7%

0%

25%

50%

75%

100%

0 0 0 0Jan. 31, 2018(12th period)

Jul. 31, 2018(13th period)

Jan. 31, 2019(14th period)

Jul. 31, 2019(15th period)

Individuals Institutional investors

Composition of Unitholders (based on number of units)

Security firms

Other domestic

companies

Foreign companies

and individuals

Financial institutions

Individuals and others

Number of Unitholders (last 4 fiscal periods)

Unitholders

Note 1: Ratio means the percentage for total units owned to total units issued. (Rounded down to the nearest three

decimal places)

92

201

224

20

0

50

100

150

200

250

0 0 0 0

0

5,000

10,000

15,000

0Individuals

and others

Financial

institutions

Foreign

companies

and individuals

Other

domestic

companies

Security

firms

Major Unitholders (as of July 31, 2019)

11,147

Name Units Ratio (1)

1 Japan Trustee Services Bank, Ltd. (Trust Acct.) 253,064 27.88%

2 The Master Trust Bank of Japan Ltd. (Trust Acct.) 175,232 19.31%

3 The Nomura Trust Banking Co., Ltd. (Trust Acct.) 37,148 4.09%

4Trust and Custody Services Bank, Ltd. (Securities Investment Trust Acct.)

25,488 2.80%

5 Mitsubishi UFJ Trust and Banking Corporation 17,223 1.89%

6 Kenedix, Inc. 16,570 1.82%

7 BNYM AS AGT/CLTS 10 PERCENT 13,258 1.46%

8 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. 12,446 1.37%

9 The Gunma Bank, Ltd. 12,171 1.34%

10 STATE STREET BANK WEST CLIENT-TREATY 505234 11,597 1.27%

Total 574,197 63.27%

Adding provisions concerning acquisition of its own investment units(as of September 12, 2019)

Provisions concerning acquisition of its investment units by the Investment Corporation was added to the Asset Management company’s Management Guidelines, and clarified the policy for flexible management according to the future market situation and a change of the price of the investment units. (2)

Capital policy that contributes to improving unitholder value

Note 2: Such provisions are added to the policy on equity finance in the financial policy on management of the

Investment Corporation’s assets by the Asset Management Company. Such addition does not mean that

the Investment Corporation has made any specific decision on acquisition of its own investment units.

Appendices

31

Appendices

Residents growth rate in Tokyo 23 wards and major cities in Japan(YoY)

Sendai city Fukuoka citySapporo city

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2009 2011 2013 2015 2017 2019

福岡県

福岡市

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2009 2011 2013 2015 2017 2019

宮城県

仙台市

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2009 2011 2013 2015 2017 2019

北海道

札幌市

Nagoya cityOsaka cityTokyo 23 wards

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2009 2011 2013 2015 2017 2019

愛知県

名古屋市

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2009 2011 2013 2015 2017 2019

大阪府

大阪市

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2009 2011 2013 2015 2017 2019

東京都

東京23区

Source ：Ministry of Internal Affairs and Communications. Report on Population Movement based on the Basic Resident Register.

Note ：Residential population growth rate is calculated based on comparison with the previous fiscal year ended March 31. Methods for calculating statistics have been revised in 2006. The foreigners subject to the basic resident

registration law have been included in the statistics since 2013, but this analysis indicates the transition related to Japanese only.

Tokyo pref.

Tokyo 23 wards

Osaka pref.

Osaka city

Aichi pref.

Nagoya city

Hokkaido pref.

Sapporo city

Miyagi pref.

Sendai city

Fukuoka pref.

Fukuoka city

32

Appendices

Construction of rental apartments and net inflow of residents into Tokyo 23 wards and major cities in Japan

0

5,000

10,000

15,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

-5,000

0

5,000

10,000

15,0002008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

0

5,000

10,000

15,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

-5,000

0

5,000

10,000

15,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

0

5,000

10,000

15,000

20,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

0

20,000

40,000

60,000

80,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Tokyo 23 wards Osaka city Nagoya city

Sapporo city Sendai city Fukuoka city

(units or

persons)

(units or

persons)

Construction of rental apartments Net inflow of residents

Source ： Ministry of land, Infrastructure, Transport and Tourism. Statistics for the Construction of New Housing. Ministry of Internal Affairs and Communications. Report on Population Movement based on the Basic Resident Register.

Note ： The total number for each year includes concrete, steel, reinforced concrete and steel reinforced concrete buildings. The net inflow of residents is calculated by subtracting the total number of residents moving out of the

relevant city from the total number of residents moving into the relevant city.

33

Appendices

20.8% 22.0% 19.8% 21.5%

39.2% 37.8%36.3% 35.0%

20.9% 21.1%22.4% 21.8%

12.6% 12.9% 13.1% 13.6%

6.6% 6.3% 8.5% 8.1%

2018.1 2018.7 2019.1 2019.7

56.2% 57.1% 57.6% 57.2%

43.8% 42.9% 42.4% 42.8%

2018.1 2018.7 2019.1 2019.7

57.4% 56.5% 54.7% 54.5%39.5% 39.1% 37.7% 37.6%

78.4% 77.9% 74.2% 74.8%

22.9% 23.9% 25.6% 25.9%

28.9% 30.2% 31.0% 31.7%

15.8% 16.0% 19.4% 19.0%16.9% 16.8% 17.1% 16.8%

27.1% 26.2% 27.0% 26.3%

5.0% 5.2% 5.7% 5.5%2.8% 2.8% 2.6% 2.8% 4.5% 4.4% 4.3% 4.4%0.8% 0.8% 0.7% 0.8%

2018.1 2018.7 2019.1 2019.7 2018.1 2018.7 2019.1 2019.7 2018.1 2018.7 2019.1 2019.7

全体東京経済圏地方経済圏

35.0% 36.1% 36.3% 37.1%

65.0% 63.9% 63.7% 62.9%

2018.1 2018.7 2019.1 2019.7

Tenant Demographics Analysis (Residential Facilities)

Large corporate contracts in rental

housing(2)

Sex

Note 1: Lessees of units at the end of each period

include stores and offices.

Note 2: Large corporate contracts are those that lease

over 20% of the units in a certain property.

However, properties which have rent

guaranteed master lease contracts are excluded.

Property NameNumber of

Contracts

% in a

property

KDX Residence Higashi-Asakusa 21 units 58.3%

KDX Residence Okachimachi 27 units 52.9%

KDX Residence Yoga 18 units 47.4%

KDX Residence Higashi-shinjuku 75 units 41.9%

KDX Residence Moriguchi 7 units 25.0%

KDX Residence Minami-kusatsu 35 units 20.6%

Personal

Contracts

Corporate

Contracts

Male

Female

Age

～29

～39

～49

～59

60～

Type of Lessees(1) Breakdown of Personal Contracts

Breakdown of Rent Range (based on unit)

Type of lessees

AreaTokyo

Metropolitan Area

Other Regional Areas

Total

Studio¥95,209（+100）

¥71,086（+183）

¥86,988（+313）

Small Family¥164,672（▲247）

¥84,735（▲310）

¥121,753（+600）

Family¥207,742（+1,468）

¥152,410（+359）

¥177,583（+1,212）

Total¥134,632（-36）

¥93,249（-157）

¥115,814（+302）

Room Type

Average Rent per Residential Unit (1) (as of July 31, 2019)

Note1: ”( )” Shows the amount of increase or decrease compared to the previous period.

¥250,000～ ¥150,000～¥250,000 ¥100,000～¥150,000 ～¥100,000

Total Tokyo Metropolitan Area Other Regional Areas

34

Appendices

About Seismic Isolation Materials

Failure of Toyo Tire & Rubber Seismic Isolation Materials to Meet the Certification Requirements and Subsequent Actions

March, 2015 April, 2015 September, 2015 May, 2019 August. 2019

Toyo Tire announced

that its seismic

isolation materials do

not comply with

certification

requirements of the

Ministry of Land,

Infrastructure,

Transport and Tourism

of Japan (MLIT).

One portfolio

building uses Toyo

Tire seismic isolation

materials, but Toyo

Tire stated that these

materials complied

with the certification

requirements.

Toyo Tire announced

a new incident

involving seismic

isolation material

fraud.

The MLIT and Toyo

Tire measured the

seismic isolation

properties of the

affected KDR owned

building and

concluded that the

building is

structurally sound up

to a seismic intensity

of 6-upper to 7.

KDR, KFM and a trust bank

who is the trustee of the

building signed a

Compensation Agreement

with Toyo Tire and Toyo

Chemical Industrial Products.

An agreement was reached

concerning replacement of

the Rubber to respond to

the problem and

compensation for losses, etc.

incurred by the Investment

Corporation due to said

replacement. Accordingly,

the Concerned parties

concluded an agreement on

replacement of the Seismic

Isolation Rubber and an

additional compensation

agreement.

Replacement construction

for Seismic Isolation Rubber

was started.

Toyo Tire notified

KDR that the seismic

isolation materials in

the portfolio

building are included

in this newly

disclosed incident.

January, 2021 (planned)

Replacement construction

for Seismic Isolation Rubber

will be completed.Start of examination to

determine if any

portfolio buildings use

these materials.

KDR will continue to hold discussions regarding construction related to the replacement of the Seismic Isolation/Mitigation Oil Dampers and plans to ask KYB to take all

actions required for a satisfactory conclusion of this problem.

Replacement of the Seismic Isolation/Mitigation Oil Dampers

Seismic Isolation/Mitigation Oil Dampers manufactured by KYB Corporation and Kayaba System Machinery Co., Ltd.

October, 2018 January, 2019

“Non-compliance with the standards under

the certification of the Minister of Land,

Infrastructure, Transport and

Tourism of the seismic isolation/mitigation oil

dampers manufactured by KYB Corporation

(“KYB”) and Kayaba System Machinery Co., Ltd.

(“KSM”)” announced by the Ministry of Land,

Infrastructure, Transport and Tourism

One portfolio building uses the seismic

isolation oil dampers manufactured by KYB

and KSM with product certification

number(s)for which the performance

inspection data was considered to be falsified.

KDR has received a report from KYB and KSM

that seismic isolation oil dampers used for the

Property meet the performance standards of

MLIT, but a part of the seismic isolation oil

dampers fail to meet the performance

standard based on the contract with the

customers.

KYB announced a new incident. KYB has also reported to KDR that it will

promptly replace nonconforming products

that fail to meet the performance standards of

MLIT and products for which it is unknown

whether falsification was made.

KDR has received a new notification by KYB

and KSM that all seismic isolation oil dampers

installed in the Property fall into the products

for which it is unknown whether falsification

was made.

35

Appendices

Independent living, 17%

Nursing care, 78%

Serviced senior housing, 5%

Office42.6%

Retail17.1%

Residential

15.4%

Logistics15.4%

Hotel6.7%

Healthcare0.8% Other

1.9%

Market expansion and Strong Demand for Healthcare Facilities

Target for fill-rate of elderly housing to the elderly population

Fill-rate4.0%

(Target)

1,460,000

people(Forecast)

2 0 0 5

Trends in the number of single elderly households

Trends in the Number of Facilities and capacity in Private senior homes

2.1%

700,000people

0 .9%

230,000people

Number of capacity for

elderly housing

20252 0 1 4

In the Basic Plan for Living (National Plan), the Government has set a target for the rate of sufficiency of elderly housing for the elderly population, and aim to increase the supply volume as a policy.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2030

2035

2040

Number of elderly single households (Thousands) (Left Scale)

0

100

200

300

400

500

600

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2010 2011 2012 2013 2014 2015 2016 2017

No. of facilities (left scale)

Capacity (right scale)

Promotion of policies for a super-aging society Increase in demand for Healthcare Facilities due to progress in super-aging societies

Three long-term care insurance facilities, 26%

Hospital, 51%

Private senior homes, 13%

Serviced senior housing,

4%

Group home, 6%

TotalApprox. ¥45 trn

(Entire Healthcare Facilities)

Expansion of Healthcare Facility Real Estate Market and Securitization Market in Japan

TotalApprox. ¥300 -

¥350 bln(Balance of Real Estate

Securitization)

Source:KPMG Healthcare Japan (as of June 2016)

Source:“ARES J REIT Databook, etc.” The Association for Real Estate Securitization

Total Approx. ¥21 trn(Ｊ-REIT markets)

◼ The market size of private senior homes and serviced senior housing has a total value of approx. ¥7.5 trn. Only about ¥350 bln of these properties have been securitized (4% to 5% of all properties), leaving an enormous volume of potential growth.

◼ The ratio of Healthcare Facilities by J-REIT market sector (approx. ¥174.4 bln) is still small, and there is much room for expansion.

◼ Strong demand for Healthcare Facilities is expected in Japanese market for super-aging societies.

Approx.¥ 174.4 bln

The Real Estate Market for Healthcare Facilities Real Estate Owned by J-REITs and Private REITs（May 2019）

Source:・ Ministry of Land, Infrastructure, Transport and Tourism, Basic Plan for Living (National Plan)(Cabinet decision on March 15, 2011), (Cabinet decision on March 18, 2011)・Statistics Bureau, Ministry of Internal Affairs and Communications, "2015 Population Census" andthe National Institute of Population and Social Security Research.

・「Population Projections for Japan (2017)」

Source: National Institute of Population and Social Security Research, "Number of Households in Japan“ Future Projections (National Estimate) (January 2018 Estimates)

Source: Ministry of Health, Labour and Welfare, “Survey of Social Welfare Facilities, etc.”

36


The Business Climate for Healthcare Facilities in Japan

◼ Revisions to public-sector nursing care payments since 2009 have been generally positive; payments were raised 0.54% in FY2018.

◼ Recruiting rate and turnover rate for nursing care workforce are downward trend

Revisions to Public-sector Nursing Care Payments

3.00%

1.20%0.63%

-2.27%

1.14%0.54%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

2009年 2012年 2014年 2015年 2017年 2018年

Recruiting rate and Turnover rate for Nursing Care Workforce

Source: Survey of Nursing care labor situation 2017, Care Work Foundation

Source: Ministry of Health, Labour and Welfare

Growth of Japan’s Nursing Care Workforce

◼ Since the FY2000 start of the nursing care insurance system, the nursing care workforce in Japan has increased by 1.28 million people (about 3.3 times).

◼ Recruit and train many types of people , using robots and taking other actions will be being introduced.

Measures to Recruit Nursing Care Workers

54.963.5

72.484.9

96.4108.6 114.1 119.6 123.3

136.3142.7

150.9163.0

170.8176.5

183.1 183.3

0

50

100

150

200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Unit: 10,000

Source: Survey of Institutions and Establishments for Long-term Care, Ministry of Health, Labour and Welfare

Source: Ministry of Health, Labour and Welfare

Increase salaries and

other benefits

Recruit and train many

types of people

Measures to increase

retention and raise productivity

Make nursing care jobs more

appealing

Measures to increase the use

of foreign workers

(Actual) Average monthly wage increased by an amount equivalent to ¥57,000Monthly wage increased by ¥14,000 (FY2017)Monthly wage increased by ¥13,000 (FY2015)Monthly wage increased by ¥6,000 (FY2012)Monthly wage increased by ¥24,000 (FY2009)

○ Education loans to students wanting to train as care workers

○ Loans to care workers wanting to return to jobs in the nursing care sector (to prepare for taking up jobs again.). (The loan ceiling is doubled in regions where it is

difficult to recruit care workers)

○ Promote the use of nursing care robots and ICT○ Support for establishing childcare facilities in

nursing care facilities and offices○ Reduce the financial burden of taking training

seminars for career advancement and support for substitute care workers

○ Promote the understanding of nursing care work among students, their guardians and career guidance staff

◎ Following the establishment of the “Nursing Care” visa status, provide support for foreign students wanting to obtain Care Worker National Certificate. (Promote student loans for studying nursing care and provide consultation on everyday life issues.)

◎ Wage increase simultaneously with the hike in the consumption tax rate scheduled for October 2019

◎ Establish an integrated service from induction courses for middle-age and elderly persons with no experience in nursing care to job matching after completion of training courses

◎ Support measures for recruitment at care workers education facilities

◎ Accelerate introduction of nursing care robots and ICT, through support of the introduction of nursing care robots and provision of guidance for improving productivity.

◎ Popularization of the accreditation system and drawing up of guidelines

◎ Hands-on learning events to get a better understating of nursing care service (improve the image of nursing care jobs)

Significant Measures Implemented Additional Significant Measures Scheduled to be Implemented

27.4%

22.6%

25.2%25.8%

21.0%

23.3%

21.7%20.6% 20.3%

19.4%

17.8%21.6%

18.7%

17.0%17.8%

16.1%17.0% 16.6% 16.5% 16.5% 16.7% 16.2%

10.0%

15.0%

20.0%

25.0%

30.0%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

採用率離職率Recruiting

rate

Turnover

rate

37


Overview of Operators

Note: Facilities operated and capacity are based on information received from operators and other sources and are current as of June 30, 2019. All figures for operators are non-consolidated. Private senior homes,Serviced senior housing, Group homes, Special nursing home for the elderly, Nursing and health facilities and Care Homes are counted.

Operators of KDR Owned PropertiesOperator

(Parent company, etc.)Established

Facilities operated (note)

No. of rooms(note)

Listed/UnlistedLocations owned by KDR

(Property name)

Sompo Care Inc.(Sompo Holdings, Inc.)

May 1997 439 26,080Consolidated subsidiary of Sompo Holdings, Inc. (TSE 1st section listed)

Sompo Care Lavire Kobe Tarumi

Benesse Style Care Co., Ltd.(Benesse Holdings, Inc.)

September 1995 324 17,520Consolidated subsidiary of Benesse Holdings, Inc. (TSE 1st section listed)

Granda Mondo Yakujin

HITOWA Care Service Co., Ltd.(HITOWA Holdings Co., Ltd.)

November 2006 116 7,041 Unlisted companyIrise Kamata/YuseienIrise NishiokaIzarie Eniwa building (Irise Eniwa)

Nichii Carepalace Company(NICHIIGAKKAN CO., LTD.)

June 1964 79 5,075Consolidated subsidiary of NICHIIGAKKAN CO., LTD. (TSE 1st section listed)

Nichii Home Nakano MinamidaiNichii Home Tama Plaza

Sawayaka Club Co., Ltd.(Uchiyama Holdings Co., Ltd.)

December 2004 84 4,973Consolidated subsidiary of UCHIYAMA HOLDINGS Co., Ltd. (TSE 1st section listed)

Sawayaka Sakura Nibankan

Tsukui Coroporation June 1969 87 4,189 TSE 1st section listed Tsukui Sun-shine Machida

Care 21 Corporation November 1993 103 3,616 TSE JASDAQ listed Plaisant Grand Ota tamagawa

Trust Garden Co., Ltd.(Resorttrust, Inc.)

August 2007 17 1,659Consolidated subsidiary of Resorttrust, Inc. (TSE 1st section listed)

Activa Biwa

NOTE Social Welfare Corporation June 1983 23 1,117 Unlisted organization Ten

Excellent Care System Co., Ltd. August 2004 29 1,099 Unlisted companyExcellent NishinomiyaExcellent Kitano

Community Net Inc. June 1998 12 622 Unlisted company Yuimaru Hijirigaoka

HakusinkaiMedical Corporation(Nihon Human Support Co., Ltd.)

November

199911 566 Unlisted organization

Anesis Teradacho, Rococo-riha, Orage Suma, Canadian Hill, Anesis Hyogo

Japan Care Link Co.,Ltd(Solasto Corporation)

November 2000 22 466Consolidated subsidiary ofSolasto Corporation (TSE 1st section listed)

Serabi Ebisu

NM LIFE Co., Ltd.(Iriscare Co., Ltd.)

October 1995 1 232 Unlisted company Joy Stage Hachioji

Silver Town Ltd.(Iriscare Co., Ltd.)

February 2002 3 178 Unlisted company Gran Hills Ogawarako

38

Appendices

Rank Company Major brandsLocations owned by

KDR

Total (note)

Buildings Rooms

1 Sompo Care Sompo no ie, Sompo no ie S, Sompo Care Lavire 1 433 25,574

2 Benesse Style Care Aria, Kurara, Granny & Granda, Madoka, Bonsejour, Kokochi, Li-Re 1 324 17,520

3 NICHIIGAKKAN Nichii no Kirameki, Nichii no Hohoemi, Nichii Home, Iris Garden 2 428 13,945

4 Gakken Group Cocofan, Ai no ie, Ensemble, Faminew 413 12,246

5 BestLife BestLife 174 11,003

6 Kawashima Corporation Sunny Life, Yawaragien 121 10,339

7 KOYAMA Healthcare Group (No specific brand) 191 8,332

8 Souseikai Group Good Time Home 98 7,946

9 HITOWA Care Service Irise 3 116 7,041

10 Kinoshita Care Lien Reve, Life commune, Ouen Kazoku 115 6,672

11 VATI Furusato Home, Anshin Home 146 5,420

12 Uchiyama Holdings Sawayaka 1 84 4,973

13 Half Century More SunCity 17 4,911

14 Fuji Amenity Service Fuji Palace Senior 151 4,753

15 Genkimura Group Shoyouen 134 4,636

16 TSUKUI TSUKUI Sunshine, TSUKUI Sun Forest 1 89 4,272

17 SHIP Healthcare Holdings Green Life, Well House 68 4,195

18 UNIMAT Retirement Community Soyokaze, Mazeran 160 4,190

19 ALSOK Group Minna no ie, Sukoyaka, Amica, Katakuri 136 4,097

20 Nakagin Group Nakagin Life Care 22 3,831

21 Care 21 Plaisant Grand, Plaisant maison, Tanoshii ie 1 112 3,708

36 Excellent Care System Excellent, Suite, Grand Home 2 60 1,932

39 Nihon Human Support Human Support 6 33 1,815

46 Resorttrust Group Trust Garden, Trust Grace 1 19 1,710

69 NOTE Social Welfare Corporation Yuyujiteki, Gokigen, Happy House 1 26 1,185

133 Community Net Yuimaru 1 12 634

200 Iriscare Gran Hills, Joy Stage 2 4 420

Senior Housing and Senior Care Facility Operators Ranked by Number of Rooms

Senior Housing and Senior Care Facilities

Source: Shukan Koreisha Jutaku Shimbun (“Weekly Senior Housing Newspaper”), August 7 and 14, 2019 (Issue 551)Note: The number of buildings and number of rooms are as of August 31, 2019 and based on information in Shukan Koreisha Jutaku Shimbun, August 7 and 14, 2019 (Issue 551). For corporate

groups, the number of buildings and number of rooms are for all private senior homes, memory care group homes and senior care facilities of affiliated companies.

39

Appendices

0

100

200

300

400

500

600

700

0.0 1.0 2.0 3.0 4.0

ActivaBiwa

OrageSuma

Nichii Home Tama Plaza

Nichii Home Nakano

Minamidai

Plaisant Grand Ota tamagawa

Tsukui Sun-shine Machida

Anesis Teradacho

Aruteishiyagawa

SerabiEbisu

Irise Eniwa

Service for self-reliant Service for requiring nursing care

Classification of Senior Living Facilities

For persons living on their own

（self-reliant）For persons requiring nursing care

Mid-price range High price range Mid-price range High price range

Market demand

◎（Potential

demand）

△（Price）

◎（Volume zone）

○（Price）

Monthly

housing charge￥0.1～0.3 million

￥0.3 million

～￥0.1～0.3 million

￥0.3 million

～

Unit size 25～50m2 50～100m2 15～25m2 18～25m2

Room amenities

Shared

amenities

Note 1: The above chart shows, in a simplified manner, the general features of market demand, monthly housing charge, unit size, room amenities and shared amenities assumed by KDR to pertain to the mentioned typesof senior living facilities. The monthly housing charge is calculated as follows: “the amount of lump sum received, if any, whether there is or not initial depreciation, divided by the No. of months of the amortizationperiod defined by the tenant agreement” + “the monthly usage charge (including meal charges).”

Note 2: This diagram is a simplified analysis of attributes of senior living facilities in the portfolio. The averages of both service for self-reliant and service for requiring nursing care are calculated for Joy Stage Hachioji, Yuimaru Hijirigaoka, Ten, and

Active Biwa.

Washroom, bathroom, air conditioner, etc

bathroom, kitchen, etc.

Dining room, kitchen, lounge, etc.

bathroom (for individual, public

bath room and mechanical

bathroom), helper station, health

management room, rehabilitation

room, etc.

public

bathroom,

Leisure

facilities , etc.

Average Required Level of Nursing and Monthly Paid Fee by

Facilities（2）Classification of Senior Living Facilities by Type（1）

（thousand yen）

Irise Nishioka

Ten

Sawayaka Sakura Nibankan

Ten

Joy Stage Hachioji

ActivaBiwa

YuimaruHijirigaoaka

Gran Hills Ogawarako

YuimaruHijirigaoka

GrandaMondo Yakujin

Excellent Nishinomiya

Joy Stage Hachioji

Monthly charged fee

Level of required nursing care

New demand

Volume zone

Sompo Care Lavire Kobe Tarumi

Excellent Kitano Irise Kamata/Yuseien

40


Status of Lease Agreements (Healthcare Facilities)

No. Name Operator（1,2） Facility Type Remaining Term（3） Revision PeriodDate of Next

Revision

(yrs)

Health

care

Facilitie

s

H-1 Irise Kamata/Yuseien HITOWA Care Service Co., Ltd. 22.9 Each 5 years 2022/7/1

H-2 Nichii Home Nakano Minamidai Nichii Carepalace Company 7.6 Each 3 years 2022/4/1

H-3 Joy Stage Hachioji NM LIFE Co., Ltd. 16.5 Not allowed (4) -

H-4 Yuimaru Hijirigaoka Community Net Inc. 45.3 Not allowed (5) -

H-5 Nichii Home Tama Plaza Nichii Carepalace Company 13.0 Each 3 years 2027/9/1

H-6 Ten NOTE Social Welfare Corporation 18.5 Not allowed (5) -

H-7 Irise Nishioka HITOWA Care Service Co., Ltd. 24.8 Not allowed (4) -

H-8 Izarie Eniwa Building(6) HITOWA Care Service Co., Ltd. (10) 25.6 Not allowed (4) -

H-9 Sawayaka Sakura Nibankan Sawayaka Club Co., Ltd. 13.6 Not allowed (4) -

H-10 Active Biwa Trust Garden Co., Ltd. 8.0 Each 3 years 2021/1/29

H-11 Sompo Care LAVIERE Kobe Tarumi Sompo Care Inc. 10.8 Not allowed (7) -

H-12 Granda Mondo Yakujin Benesse Style Care Co., Ltd. 18.0 Not allowed (7) -

H-13 Excellent Nishinomiya Excellent Care System Co., Ltd. 15.1 Not allowed (8) -

H-14 Gran Hills Ogawarako Silver Town Ltd. 10.2 Each 3 years (9) 2020/11/12

H-15 Excellent Kitano Excellent Care System Co., Ltd. 16.0 Not allowed (8) -

H-16 Anesis Teradacho Hakusinkai Medical Corporation 16.6 Each 5 years 2026/3/29

H-17 Rococo-riha Hakusinkai Medical Corporation 16.6 Each 5 years 2026/3/29

H-18 Orage Suma Hakusinkai Medical Corporation 16.6 Each 5 years 2026/3/29

H-19 Canadian Hill Hakusinkai Medical Corporation 16.6 Each 5 years 2026/3/29

H-20 Anesis Hyogo Hakusinkai Medical Corporation 16.6 Each 5 years 2026/3/29

H-21 Plaisant Grand Ota tamagawa Care 21 Corporation 18.5 Not allowed (7) -

H-22 Tsukui Sun-shine Machida(West)

Tsukui Coroporation22.6 Each 5 years 2022/4/1

(East) 24.8 Each 5 years 2020/6/1

H-23 Serabi Ebisu Japan Care Link Co.,Ltd 8.0 Each 3 years 2022/5/1

H-24 Arute Ishiyagawa Hakusinkai Medical Corporation 29.0 Each 5 years 2027/7/1

Average 16.8

2020 2021 2022 2023

Jan.(16th)

Jul.(17th)

Jan.(18th)

Jul.(19th)

Jan.(20th)

Jul.(21st)

Jan.(22nd)

Jul.(23st)

Revision Period

Activa Biwa

Gran Hills OgawarakoIrise Kamata/Yuseien

Nursing Care

Residential

Serviced

Nichii Home Nakano Minamidai

Nursing Care

Nursing Care

Nursing Care

Nursing Care

Residential

Nursing Care

Nursing Care

Nursing Care

Residential

Nursing Care

Note 1: In the case there are multiple tenants in each facility, status is referred based on lease agreements with operators which are main tenants.

Note 2: Types of lease agreements are all ordinary lease agreements excluding “Gran Hills Ogawarako” “Arute Ishiyagawa”. The type of lease

agreement of “Gran Hills Ogawarako” “Arute Ishiyagawa” are a fixed-term lease agreement.

Note 3: “Remaining Term” is calculated from July 31, 2019 to the termination date of agreements with operators.

Note 4: As a rule, no revision is allowed in term of agreements. Discussion is allowed about increase in rent by inflation and rising interest rates.

Note 5: As a rule, no revision is allowed in term of agreements. Discussion is allowed by each three years in the case conditions are highly unreasonable

because of the changes of economic climate but if the discussion is failed, tenants are needed to pay current rent.

Note 6: Contents of lease agreements about “Irise Eniwa” occupying from 4F to 6F of “Izarie Eniwa Building”.

Note 7: As a rule, no revision is allowed in term of agreements. Discussion is allowed in the case conditions are highly unreasonable because of the

changes of economic climate.

Note 8: As a rule, no revision is allowed in term of agreements. Discussion is allowed by each three years in the case conditions are highly unreasonable

because of the changes of economic climate and invested by the lessor to add to the real estate (including repair and extra renovation)

Note 9: Requests of rent reduction aren’t allowed except the case that the facility has defects or is unable to be used.

Note 10: The facility type was changed from “Private Senior Home (Residential)” to “Private Senior Home (with Nursing Care)” as of Jun. 1, 2019.

Nursing and health

Nursing and health

Nursing and health

Nursing and health

Nursing and health

Residential

Machida (East) Machida (West)

Serabi Ebisu

Nursing Care

Nursing Care

Nursing Care

Nursing Care

Nursing Care

41


Typical Profit Structure for Senior Living Facilities

Senior Living Facilities (Operator)

ResidentsReal estate

servicesHospitality

servicesNursing care

services Nursing care insurance

systemInsurance

coverage for care

Private Payments

KDR

Fixed rent

Investors

Distributions

Effects of any changes in the social security system

Public-sector Payments

Note: The typical senior living facility profit structure in this diagram is based on analysis performed by KDR.

◼ KDR receives steady fixed rents from the operators of senior living facilities.◼ The performance of senior living facilities is vulnerable to revisions to Japan’s social security system due to their reliance on

public-sector insurance and other coverage.◼ Although changes in the earnings of operators does not directly impact KDR’s performance, monitoring and other activities

are used to be vigilant about any potential long-term effects.

RentOthers

Depreciation, materials, etc.

Personnel expensesFee

Services

Costs

• Nursing care fee (individuals pay 10%-30% of the cost)

• Cost of residence, meals, etc.

42


Entrance

Nichii Home Tama Plaza

Location Kawasaki-shi, Kanagawa

Facility typePrivate senior home with

nursing care

Facility scale 154 rooms

Operator Nichii Carepalace Company

Common area rest room

Joy Stage Hachioji

Location Hachioji-shi , Tokyo


nursing care


Operator NM LIFE Co., Ltd.

5.9%

Returns on Investments

Operational Improvements

Activa Biwa

Location Otsu-shi, Shiga


nursing care


Operator Trust Garden Co., Ltd.

Change in the operator

Occupancy Rate

77.6 %

Occupancy Rate

94.9 %

(As of March 31, 2017) (Avg. Jan. to Jun. 2019)

• Changed the operator to the Resorttrust Group (April 2017)

• Resulted in stability of business operations and a further increase in occupancy rate

Nichii Home Nakano Minamidai

Location Nakano-ku, Tokyo


nursing care


Operator Nichii Carepalace Company

Revision to rent structure

• Revised the rent plan (May 2017)• Giving tenants a rent structure

that matches their needs resulted in higher occupancy rate

Value-up renovations in common areas

• Renovations to make this building more competitive resulted in higher rent, longer leasing periods and other improvements

5.3%

Rent Up

Note 1: “Returns on Investments” = Increase in annual cash flow / Costs of value-up works

• Value-up renovations in common areas and additional rest room (2016 and 2018)

2.1%

Rent Up

4.8%

Returns on Investments(1) (1)

Occupancy Rate

63.9 %

Occupancy Rate

82.9 %

(As of April 30, 2017)

Occupancy Rate

68.1 %

Occupancy Rate

82.1 %

(As of December 31, 2017)

Value-up renovations in common areas

(Avg. Jan. to Jun. 2019)

(Avg. Jan. to Jun. 2019)

Occupancy Rate

90.5 %

Occupancy Rate

91.7 %

(As of December 31, 2016) (Avg. Jan. to Jun. 2019)

43

Appendices

Unitholders’ benefit programs

Breakdown for the Unitholders’ benefits at approx. 774 facilities

(Note 1) The unitholders’ benefit programs are applied private nursing homes that are managed by above companies as of July 31, 2019. Other Facilities Available for Century Life Corporation and Hitowa Care Service Co., Ltd. are serviced housing for the elderly operated, Senior Life Company is apartment for the elderly, and Sompo Care Inc. is serviced housing for the elderly, Group homes.

(Note 2) As of September 2, 2019, Trust Garden Co., Ltd. a wholly-owned subsidiary of Resorttrust, Inc. acquired all outstanding shares of Senior Life Company, Inc. owned by LIXIL Corporation, and has succeeded to the management of the 5 private senior homes with nursing care operated by Senior Life Company, Inc.

25 facilities

111 facilities

10 facilitiesｚｚ

・≪On the condition of limp sum payment≫Discount on lump sum payment for resident ( ¥ 300,000 discount)・Trial residence free of charge (1-night, 2-day stay, with dinner and breakfast)・Same-day facility site-visit (with lunch) free of charge

Ⅰ. Sompo Care LAVIERE・≪On the condition of lump sum payment≫3% discount from the initial lump sum payment for resident ・≪On the condition of monthly payment≫3% discount of the amount equivalent to the rent out of the monthly payment (Until the contract ends)

Ⅱ. Sompo Care Sompo no ie, Sompo no ie S, Sompo no ieGH, Private senior homes (residential), Serviced senior housing, Group homes・3% discount of the amount equivalent to the rent out of the monthly payment or of the rent (Until the contract ends)

Tokyo, Fukuoka

Tokyo

425 facilities

74 facilities

70 facilities

5 facilities

15 facilities

1 facility

Tokyo, Saitama, Chiba, Kanagawa,

Aichi, Kyoto, Osaka, Hyogo, Hiroshima

38 facilities

• Same-day facility site-visit(with lunch) free of charge Tokyo, Saitama, Chiba,

Kanagawa, Shizuoka, Aichi, Kyoto, Hyogo, Osaka

Seikatsu Kagaku Un-Ei Co., Ltd.

Sompo Care Inc.

Hokkaido, Iwate, , Miyagi, Akita, Saitama, Chiba, Tokyo, Kanagawa, Shizuoka, Aichi,

Kyoto, Osaka, Hyogo, Nara, Okayama, Hiroshima, Fukuoka, Kumamoto

CENTURY LIFE CORPORATION

• Same-day facility site-visit(with lunch) free of charge

Tokyo, Saitama, Chiba, Kanagawa, Osaka

HITOWA Care Service Co., Ltd.

・Same-day facility site-visit(with lunch) free of charge

・Discount on usage chargefor two-month equivalent

Hokkaido, Miyagi, Saitama, Chiba, Tokyo, Kanagawa,

Nagano, Aichi, Hyogo, Okinawa

Nichii Carepalace Company

Tokyo, Saitama, Chiba, Kanagawa, Shizuoka


・Trial residence free of charge(1-night, 2-day stay, with dinner,lunch and breakfast)

Sawayaka Club Corporation

Hokkaido, Akita, Tochigi, Saitama, Chiba, Kanagawa,

Niigata, Shizuoka, Aichi, Mie, Kyoto, Osaka, Hyogo,

Ehime, Wakayama, Fukuoka, Oita

・10% discount on usage charge for first month

・Trial residence free of charge (1-night, 2-day stay, with dinner and breakfast)


LIXIL SENIOR LIFE COMPANY

CARE TWENTYONE CORPORATION



・Discount on one-time payment for resident (¥ 200,000 discount)・Trial residence free of charge, up to three times (1-night, 2-day stay, with dinner and breakfast)・Same-day facility site-visit(with lunch) free of charge (up to three times)

NM LIFE Co., Ltd.

Tokyo, Kanagawa, Kyoto, Hyogo,

Tokushima

Excellent Care System Co., Ltd.

44

Appendices

External growth support Internal growth support

Sp

on

sor e

tc.Su

pp

ort C

om

pan

ies

Development(2)

Information

provision (1) Warehousing

Personnel support

or

provision of

expertise

Renovations,

maintenance

Backup operator (3)

＿

＿

Finance support

Financing means for

bridge funds, etc.

provided

Support System by Sponsor and Support Companies

Residential facilities Healthcare facilities AccommodationSupport for:

Note 1: “Information provision” means support to provide, to KDR or KFM under certain conditions, information on sales of third parties’ real properties, etc. that Sponsor or individual Support Companies obtain on their own

or information on sales of real properties that Sponsor, individual Support Companies or their group companies, etc. possess (with respect to Shinsei Bank and Mitsubishi UFJ Trust and Banking Corporation among

other Support Companies, only information on sales of third parties’ real properties, etc. that they obtain on their own).

Note 2: “Development” means support to provide cooperation to the extent practically reasonable and under practically reasonable conditions when KDR requests support for new development of investable assets or

redevelopment of real properties, etc. that KDR possesses or considers to acquire.

Note 3: “Backup operator” means support to consider to be backup operators for existing operators who are managing facilities which are located on real properties, etc. that KDR possesses or considers to acquire when

KDR requests.

Note 4: This is limited to the provision of expertise, and personnel support is not included.

Note 5: The chart above shows a summary of support set forth in each support agreement executed by and among Sponsor, Kenedix Investment Partners Inc. (KIP), each of the Support Companies and KDR/KFM or agreeing

succession resulting from the merger. Neither the Sponsor nor the individual Support Companies are necessarily contractually obligated to provide the support above, and Sponsor, KIP and the individual Support

Companies have not guaranteed or promised to provide the support above.

(Note 4)

45

Appendices

Summary of Kenedix Group

Priority Rights of Consideration for Real Estate Sale Information

in Asset Management Company

Property typeTotal floor area per

investment property (m2)Primary 2nd

Residential All KDR KPI（1）

Healthcare All KDR －

Accommodation All KPI（1） KDR

Note 1: “KPI” indicates Kenedix Private Investment Corporation.

Main Funds Kenedix Group Involves in Operation

Residential facilitiesHealthcare facilities

Accomodation

Retail facilitiesLogistics facilities

Large-scale office buildings,

Hotels etc.

Medium-scale office buildings, etc.

Logistics facilitiesOffice buildings,

residential, etc.

Private Funds

All sorts of assets

Kenedix Real Estate Fund Management, Inc. (KFM)(KDX Wholly-owned)

Mitsui & Co.,Logistics

Partners Ltd. (KDX 10%-owned)

Premier REITAdvisorsCo., Ltd.

(KDX 30%-owned)

KFM(KDX Wholly-owned)

KenedixInvestment

Partners, Inc.(KDX Wholly-owned)

J-REIT Private REIT Private Fund

Breakdown of AUM (as of end of June 2019)

REIT¥1,540.0 bln

（70%）

Private funds¥600.8 bln

（27%）

Proprietary investments

¥71.7 bln

（3%）

¥2,212.6 bln

Childcare facilities All KDR －

Creation of priority rights of consideration for childcare facilities（as of Sep. 12, 2019）

46

Appendices

Organization Chart of KFM (KDR)

Shareholders’ meeting

Corporate Auditors

Board of Directors

Chairman,Representative Director

President & CEO

Compliance Committee

Internal Audit Dept.

Compliance

Officer/Compliance

Dept.

Office REIT Dept. Residential REIT Dept.

Residential REIT Dept.Asset Management

Committee

Private REIT Dept. Retail REIT Dept.Finance &

Accounting Dept.

Business

Administration

Dept.

Asset Investment Div.Asset Management

Div.

Healthcare Investment

Management Div. Planning Div.

Overview of Asset Management Company

Name Kenedix Real Estate Fund Management, Inc.

Representative

Ryosuke Homma

Chairman, Representative Director

Masahiko Tajima,

President & CEO

Capital 200 million yen

Book-closing December

Share

holderKenedix Inc. (100%)

Head of Residential

REIT Department

（Director & COO）

Organizational chart

Integration

◼ Organizational change of Residential REIT Department of the Asset Management Company for enhance the management system(as of July 1, 2019）

At the time of the merger, the Healthcare Investment Management Division, which is in charge of investment and management of healthcare facilities, and the management system of healthcare facilities was succeeded in order to develop the management system of healthcare facilities which requires expertise and to continue the steady management of healthcare facilities without hindrance.

More than 1 year after the commencement of management in conjunction with the merger, the management of healthcare facilities has been growing steadily

Aim to enhance the ability to manage healthcare facilities further and management ability of the whole portfolio by integrating the business pertaining to asset management in the Healthcare Investment Management Division into the Asset Management Division

47

Appendices

Financial Statements

(in thousands of yen)

14th fiscal period 15th fiscal period

(as of Jan 31, 2019) (as of Jul 31, 2019)

Liabilities

Current liabilities

Operating accounts payable 912,385 772,751

Short-term loans payable 2,050,000 2,500,000

Current portion of long-term loans payable 9,700,000 13,200,000

Accounts payable-other 298,718 305,806

Accrued expenses 27,236 27,560

Income taxes payable 605 605

Accrued consumption taxes 11,413 21,474

Advances received 1,096,282 1,148,654

Deposits received 75,292 58,742

Other - 10,098

Total current liabilities ¥14,171,933 ¥18,045,693

Noncurrent liabilities

Investment corporation bonds 5,000,000 5,000,000

Long-term loans payable 106,500,000 105,200,000

Tenant leasehold and security deposits in trust 2,682,738 3,099,642

Trust tenants lump sum deposits 4,405,195 4,493,753

Asset retirement obligations - 67,338

Other 392,732 517,915

Total noncurrent liabilities ¥118,980,667 ¥118,378,649

Total liabilities ¥133,152,600 ¥136,424,343

Net Assets

Unitholders’ equity

Unitholders’ capital 93,226,228 99,731,514

Surplus

Investment surplus 13,187,100 13,187,100

Reserve for temporary difference adjustment 2,000,000 1,980,000

Unappropriated retained earnings (undisposed loss) 3,875,050 4,125,881

Total surplus ¥19,062,150 ¥19,292,981

Total unitholders’ equity ¥112,288,379 ¥119,024,495

Valuation and translation adjustments

Deferred gains or losses on hedges △337,222 △483,092

Total valuation and translation adjustments ¥△337,222 ¥△483,092

Total net assets ¥111,951,157 ¥118,541,403

Total liabilities and net assets ¥245,103,757 ¥254,965,747



(as of Jan 31, 2019) (as of Jul 31, 2019)

Assets

Current assets

Cash and deposits 12,356,302 10,296,548

Cash and deposits in trust 9,721,629 9,903,118

Operating accounts receivable 26,612 36,005

Prepaid expenses 7,450 12,815

Consumption taxes receivable 338,402 -

Other 6,081 856

Total current assets ¥22,456,477 ¥20,249,344

Noncurrent assets

Property, plant and equipment

Land 1,798,041 1,798,041

Building in trust 85,953,573 89,530,077

Structures in trust 785,989 881,774

Machinery and equipment in trust 1,140,736 1,115,184

Tools, furniture and fixtures in trust 422,136 457,614

Land in trust 130,189,152 138,484,736

Total property, plant and equipment, net ¥220,289,630 ¥232,267,430

Intangible assets

Land leasehold in trust 1,067,058 1,228,912

Other 6,339 5,563

Total intangible assets ¥1,073,398 ¥1,234,475

Investments and other assets

Investment securities 111,796 2,398

Lease and guarantee deposits 29,097 89,097

Long-term prepaid expenses 1,059,774 1,014,728

Total investments and other assets ¥1,200,668 ¥1,106,223

Total noncurrent assets ¥222,563,697 ¥234,608,129

Deferred assets

Investment corporation bond issuance costs 38,570 35,327

Investment unit issuance costs 45,012 72,944

Total deferred assets ¥83,583 ¥108,272

Total assets ¥245,103,757 ¥254,965,747

Balance Sheets

48

Appendices

Financial Statements



from: Aug. 1, 2018 from: Feb. 1, 2019

to: Jan. 31, 2019 to: Jul. 31, 2019

Operating revenues

Rent revenues-real estate 7,085,174 7,342,246

Other lease business revenue 520,733 590,778

Gain on sales of real estate, etc. 203,178 203,392

Dividend received 14,461 -

Total operating revenues ¥7,823,548 ¥8,136,417

Operating expenses

Expenses related to rent business 2,794,762 2,915,721

Asset management fees 513,065 562,274

Asset custody fees 11,985 13,404

Administrative service fees 41,723 45,950

Directors' compensation 8,100 8,100

Other operating expenses 240,701 231,968

Total operating expenses ¥3,610,337 ¥3,777,419

Operating Income ¥4,213,210 ¥4,358,998

Non-operating income

Interest income 45 38

Dividends and redemption-prescription 313 765

Interest on refund 3 463

Total non-operating income ¥362 ¥1,268

Non-operating expenses

Interest expenses 491,744 485,799

Interest expenses on Investment corporation bonds 9,974 13,825

Borrowing expenses 101,223 100,264

Amortization ofinvestment corporation bond issuance costs 2,560 3,243

Amortization of investment unit issuance costs 9,022 15,269

Total non-operating expenses ¥614,525 ¥618,402

Ordinary Income ¥3,599,047 ¥3,741,863



from: Aug. 1, 2018 from: Feb. 1, 2019

to: Jan. 31, 2019 to: Jul. 31, 2019

Net cash provided by (used in) operating activities 5,211,979 5,947,236

Net cash provided by (used in) investing activities △28,903,451 △13,427,488

Net cash provided by (used in) financing activities 26,989,982 5,601,986

Net increase (decrease) in Cash and Cash Equivalents ¥3,298,510 ¥△1,878,264

Cash and cash equivalents at the beginning of period 18,779,421 22,077,932

Cash and cash equivalents at the End of Period ¥22,077,932 ¥20,199,667


from: Aug. 1, 2018 from: Feb. 1, 2019

to: Jan. 31, 2019 to: Jul. 31, 2019

I. Retained earnings at the end of period 3,875,050,769 yen 4,125,881,528 yen

II. Reversal of voluntary retained earnings

Reversal of reserve for temporary difference adjustments 20,000,000 yen 20,000,000 yen

III. Total distributions 3,510,428,187 yen 3,687,001,854 yen

(Distributions per unit) （4,039 yen）（4,063 yen）

Ⅳ. Retained earnings brought forward to the

next period384,622,582 yen 458,879,674 yen

Statements of Income and Retained Earnings

Distributions

Statements of Cash Flows



from: Aug. 1, 2018 from: Feb. 1, 2019

to: Jan. 31, 2019 to: Jul. 31, 2019

Income before income taxes ¥3,599,047 ¥3,741,863

Income taxes-current 605 605

Total income taxes ¥605 ¥605

Net Income ¥3,598,442 ¥3,741,258

Retained earnings brought forward 276,608 384,622

Unappropriated retained earnings (undisposed loss) ¥3,875,050 ¥4,125,881

49

Appendices

¥92,295 ¥93,297 ¥97,461 ¥105,254

¥110,612

¥120,880

¥136,325 ¥141,812 ¥143,904

¥149,079 ¥152,528 ¥153,716 ¥161,320

¥164,699 ¥170,844

1.5 3.2 9.4 22.8 48.7

103.6

149.7

187.9 203.2

238.1 262.4 270.9

307.0 347.0

401.7

0.5% 1.0%

3.0%2.3%

4.8%

8.3%

10.1%

12.5%13.5%

15.2%16.8% 16.4% 15.9% 15.7%

17.2%

0.0%

5.0%

10.0%

15.0%

20.0%

0

100

200

300

400

Appraisal Unrealized Capital Gains and NAV per Unit

Appraisal Unrealized Capital Gains and Appraisal Unrealized Gain Ratio(1)

NAV per Unit（2）

(in billions of yen)

Note 1: “Appraisal Unrealized Capital Gains” = Total Appraisal Value at the End of the Period – Total Book Value at the End of the Period (Appraisal Value for Healthcare facilities after the merger). “Appraisal Unrealized Capital Gain Ratio” = Total Appraisal

Unrealized Capital Gains at the End of the Period / Total . After the merger of “Appraisal Unrealized Capital Gains” and ”Appraisal Unrealized Gain Ratio“are estimated figure calculated under premise assumptions as of March 1,2018.

note2: "NAV per unit" has been changed as follows, including for past figures

Calculation method up until the 11th fiscal period: NAV per unit = (end of period total assets - unappropriated retained earnings + end of period appraisal value - property, plant and equipment)/number of outstanding units

Calculation method from the 12th fiscal period: NAV per unit = (end of period total assets - total distribution amount + end of period appraisal value - property, plant and equipment – land leasehold in trust) /number of outstanding units

Further, considering the 2-for-1 investment unit split on March 1, 2018, NAV per unit from January 31, 2018 (end of 12th fiscal period) onward reflects the split by being prorated by 2. Post-merger NAV per unit is estimated figure calculated as of

March 1, 2018 based on certain assumptions.

Appraisal unrealized capital gains Appraisal unrealized capital gain ratio (RHS)

Jul. 31, 2012(1st Period)

Jan. 31, 2013(2nd Period)

Jul. 31, 2013(3rd Period)

Jan. 31, 2014(4th Period)

Jul. 31, 2014(5th Period)







Jan. 31, 2018(12tt Period)




Jul. 31, 2012(1st Period)

Jan. 31, 2013(2nd Period)

Jul. 31, 2013(3rd Period)













10

20

30

40

50

Appendices

Appraisal Values 1/6

Appraisal Value Cap Rate Discount Rate Terminal Cap Rate

No. Property Name Appraiser PreviousEnd of the

15th PeriodDifference Previous

End of the

15th PeriodPrevious

End of the

15th PeriodPrevious

End of the

15th Period

Acquisition

PriceDifference Book Value Difference

a b c [b-a] d e [b-d] f g [b-f]

To

kyo

Metro

po

litan

Are

a

T-1 KDX Daikanyama Residence F 5,830 6,200 370 4.0% 3.8% 3.8% 3.6% 4.2% 4.0% 4,700 1,500 4,781 1,418

T-3 KDX Odemma Residence F 2,100 2,170 70 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 1,775 395 1,708 461

T-4 KDX Iwamoto-cho Residence F 977 1,010 33 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 822 188 787 222

T-5 KDX Bunkyo Sengoku Residence F 1,780 1,810 30 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 1,488 322 1,450 359

T-6 KDX Azumabashi Residence F 896 914 18 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 650 264 615 298

T-7 KDX Shimura Sakaue Residence F 3,420 3,510 90 4.4% 4.3% 4.2% 4.1% 4.6% 4.5% 2,830 680 2,662 846

T-9Cosmo Heim Motosumiyoshi(land with leasehold interest) F 1,800 1,840 40 - - 4.5% 4.4% 4.7% 4.6% 1,750 90 1,798 41

T-10 KDX Musashi Nakahara Residence F 728 741 13 4.7% 4.6% 4.5% 4.4% 4.9% 4.8% 637 104 632 108

T-11 KDX Chiba Chuo Residence D 1,790 1,830 40 4.8% 4.7% 4.6% 4.5% 5.0% 4.9% 1,480 350 1,316 513

T-12KDX Kawaguchi Saiwai-choResidence F 1,410 1,450 40 4.6% 4.5% 4.4% 4.3% 4.8% 4.7% 1,150 300 1,109 340

T-13 KDX Residence Shirokane I F 3,490 3,590 100 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 3,000 590 3,084 505

T-15 KDX Residence Shirokane II F 3,400 3,550 150 3.9% 3.8% 3.7% 3.6% 4.1% 4.0% 2,800 750 2,854 695

T-16 KDX Residence Minami-aoyama F 2,530 2,530 - 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 2,230 300 2,238 291

T-17 KDX Residence Minami-azabu F 2,580 2,720 140 4.0% 3.8% 3.8% 3.6% 4.2% 4.0% 2,080 640 2,072 647

T-18 KDX Residence Shiba Koen F 2,360 2,370 10 3.9% 3.8% 3.7% 3.6% 4.1% 4.0% 1,781 589 1,761 608

T-19 KDX Residence Azabu East F 1,910 2,000 90 4.1% 3.9% 3.9% 3.7% 4.3% 4.1% 1,560 440 1,592 407

T-20 KDX Residence Takanawa F 1,050 1,060 10 3.9% 3.8% 3.7% 3.6% 4.1% 4.0% 770 290 761 298

T-21 KDX Residence Nishihara F 1,870 1,900 30 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 1,450 450 1,492 407

T-22 KDX Residence Daikanyama II F 952 1,000 48 4.2% 4.0% 4.0% 3.8% 4.4% 4.2% 730 270 759 240

T-23 KDX Residence Sendagaya F 815 844 29 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 650 194 638 205

T-24KDX Residence NihombashiSuitengu D 3,900 4,020 120 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 3,240 780 3,154 865

T-25KDX Residence NihombashiHakozaki D 1,370 1,430 60 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 1,147 283 1,156 273

T-26 KDX Residence Higashi-shinjuku F 4,090 4,090 - 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 3,270 820 3,236 853

T-27 KDX Residence Yotsuya F 2,740 2,870 130 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 2,260 610 2,297 572

T-28 KDX Residence Nishi-shinjuku F 1,330 1,330 - 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 1,000 330 996 333

T-29 KDX Residence Kagurazaka F 924 930 6 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 720 210 710 219

T-30 KDX Residence Futako Tamagawa F 1,440 1,480 40 4.2% 4.1% 4.0% 3.9% 4.4% 4.3% 1,250 230 1,276 203


Note 1: Regarding Appraisers, “F” means Japan Real Estate Institute, “D” means Daiwa Real Estate Appraisal co., ltd., “M” means JLL Morii Valuation & Advisory K.K. and “T” means The Tanizawa Sogo Appraisal Co., Ltd. Appraisal values are rounded down

to the nearest ¥mln. Contents of the real estate appraisal are opinions and judgements at the time of evaluation(Previous; January 31, 2019,15th Period; July 31, 2019), and do not guarantee the validity, accuracy and the possibility of sales at

appraisal values. Subtotal and Total of “Cap Rate”, “Discount Rate” and “Terminal Cap Rate” are calculated by the weighted average by the appraisal value. For properties for which multiple discount rates are set per fiscal period, the value for the

first fiscal period in which a discount rate was applied is shown above.

51

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To

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po

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Are

a

T-31 KDX Residence Komazawa Koen F 1,120 1,120 - 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 920 200 905 214

T-32 KDX Residence Misyuku F 926 958 32 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 760 198 752 205

T-33 KDX Residence Yoga F 845 864 19 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 700 164 695 168

T-34 KDX Residence Shimouma F 765 765 - 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 600 165 598 166

T-35 Raffine Minami-magome F 1,480 1,450 30 4.8% 4.7% 4.6% 4.5% 5.0% 4.9% 1,250 200 1,241 208

T-36 KDX Residence Yukigaya Otsuka F 1,340 1,340 - 4.3% 4.2% 4.1% 4.0% 4.5% 4.4% 1,050 290 1,024 315

T-37 KDX Residence Denen Chofu D 1,230 1,280 50 4.4% 4.3% 4.2% 4.1% 4.6% 4.5% 1,000 280 1,062 217

T-38 KDX Residence Tamagawa F 921 942 21 4.4% 4.3% 4.2% 4.1% 4.6% 4.5% 776 166 739 202

T-39 KDX Residence Monzennakacho F 995 1,010 15 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 773 237 766 243

T-40 KDX Residence Okachimachi F 1,040 1,060 20 4.2% 4.1% 4.0% 3.9% 4.4% 4.3% 850 210 870 189

T-41 KDX Residence Moto-asakusa F 987 1,010 23 4.2% 4.1% 4.0% 3.9% 4.4% 4.3% 800 210 788 221

T-42 KDX Residence Itabashi Honcho F 760 767 7 4.4% 4.3% 4.2% 4.1% 4.6% 4.5% 620 147 599 167

T-43 KDX Residence Azusawa F 652 654 2 4.4% 4.3% 4.2% 4.1% 4.6% 4.5% 550 104 551 102

T-44 KDX Residence Tobu Nerima F 508 522 14 4.5% 4.4% 4.3% 4.2% 4.7% 4.6% 420 102 396 125

T-45 KDX Residence Yokohama Kannai F 981 985 4 4.6% 4.5% 4.4% 4.3% 4.8% 4.7% 800 185 776 208

T-46 KDX Residence Miyamaedaira F 1,130 1,140 10 4.5% 4.4% 4.3% 4.2% 4.7% 4.6% 999 141 1,001 138

T-47 KDX Residence Machida F 2,030 2,080 50 4.3% 4.2% 4.1% 4.0% 4.5% 4.4% 1,800 280 1,709 370

T-48 KDX Residence Kinshicho F 1,670 1,690 20 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 1,350 340 1,339 350

T-49KDX Residence NihombashiHamacho F 1,220 1,250 30 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 996 254 1,001 248

T-50KDX Residence NihombashiNingyocho F 666 682 16 4.2% 4.1% 4.0% 3.9% 4.4% 4.3% 530 152 560 121

T-51 KDX Residence Jiyugaoka F 1,580 1,620 40 3.9% 3.8% 3.7% 3.6% 4.1% 4.0% 1,268 352 1,319 300

T-52 KDX Residence Togoshi F 4,730 4,800 70 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 3,745 1,055 3,745 1,054

T-53KDX Residence Shinagawa Seaside F 3,260 3,340 80 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 2,593 747 2,575 764

T-54 KDX Residence Ojima F 2,260 2,370 110 4.2% 4.1% 4.0% 3.9% 4.4% 4.3% 1,857 513 1,833 536

T-55 KDX Residence Oyama F 3,240 3,310 70 4.4% 4.3% 4.2% 4.1% 4.6% 4.5% 2,679 631 2,638 671

T-56 KDX Residence Hanzomon F 5,560 5,650 90 4.1% 4.0% 3.8% 3.7% 4.2% 4.1% 4,832 818 4,950 699

T-57 B-Site Akihabara F 985 1,010 25 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 850 160 862 147





52

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End of the

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End of the

15th Period

Acquisition



To

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Metro

po

litan

Are

a

T-58 KDX Residence Kagurazaka Dori F 1,880 1,940 60 3.8% 3.7% 3.6% 3.5% 4.0% 3.9% 1,360 580 1,380 559

T-59 KDX Residence Sendagi F 2,450 2,510 60 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 2,200 310 2,355 154

T-60 KDX Residence Seijo F 1,560 1,600 40 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 1,400 200 1,421 178

T-61 KDX Residence Akihabara F 1,500 1,560 60 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 1,250 310 1,249 310

T-62 KDX Residence Iriya F 1,370 1,400 30 4.3% 4.2% 4.1% 4.0% 4.5% 4.4% 1,062 338 1,062 337

T-63 KDX Residence Tachikawa F 3,560 3,650 90 4.3% 4.2% 4.1% 4.0% 4.5% 4.4% 3,026 623 2,994 655

T-64 KDX Residence Tsurumi F 1,460 1,500 40 4.9% 4.8% 4.7% 4.6% 5.1% 5.0% 1,050 450 1,149 350

T-65 KDX Residence Morishita Chitose M 1,250 1,300 50 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 1,100 200 1,106 193

T-66 KDX Residence Akasaka F 1,650 1,760 110 3.8% 3.6% 3.6% 3.4% 4.0% 3.8% 1,150 610 1,191 568

T-67 KDX Residence Kanda F 1,090 1,110 20 3.9% 3.8% 3.7% 3.6% 4.1% 4.0% 700 410 722 387

T-68 KDX Residence Ebisu F 4,090 4,320 230 3.8% 3.6% 3.6% 3.4% 4.0% 3.8% 2,845 1,475 2,939 1,380

T-69 KDX Residence Nishi-magome F 1,230 1,260 30 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 1,130 130 1,170 89

T-70 KDX Residence Nishi-azabu F 1,600 1,710 110 3.9% 3.7% 3.7% 3.5% 4.1% 3.9% 1,224 486 1,240 469

T-71 KDX Residence Azabu Sendaizaka F 1,040 1,090 50 3.9% 3.7% 3.7% 3.5% 4.1% 3.9% 792 297 806 283

T-72 KDX Residence Waseda Tsurumaki F 813 834 21 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 561 273 566 267

T-73 KDX Residence Bunkyo Yushima F 939 975 36 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 695 280 702 272

T-74 KDX Residence Kamishakujii F 801 820 19 4.4% 4.3% 4.2% 4.1% 4.6% 4.5% 648 172 657 162

T-75 KDX Residence Shin-otsuka F 968 993 25 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 764 229 775 217

T-76 KDX Residence Sakurajosui F 1,130 1,160 30 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 894 266 906 253

T-77 KDX Residence Ryogoku F 1,100 1,130 30 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 842 288 855 274

T-78 KDX Residence Toyosu T 7,640 7,640 - 4.1% 4.1% 4.3% 4.3% 4.3% 4.3% 7,500 140 7,734 -94

T-79 KDX Residence Asagaya F 2,120 2,170 50 4.0% 3.9% 3.8% 3.7% 4.2% 4.1% 1,930 240 1,964 205

T-80 KDX Residence Hiyoshi F 2,720 2,730 10 4.7% 4.6% 4.4% 4.3% 4.8% 4.7% 2,635 94 2,699 30

T-81 KDX Residence Kamikitazawa F - 1,410 - - 4.3% - 4.0% - 4.4% 1,360 50 1,395 14

T-82 KDX Residence Kaminoge F - 1,230 - - 4.0% - 3.7% - 4.1% 1,111 119 1,141 88

T-81 KDX Residence Higashi-Asakusa F - 737 - - 4.1% - 3.9% - 4.3% 688 49 709 27

Subtotal / Average 144,324 151,397 3,696 4.1% 4.0% 4.0% 3.9% 4.4% 4.3% 122,505 28,891 123,148 28,248






53

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End of the

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Oth

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al A

reas

R-2 KDX Jozenji Dori Residence D 1,290 1,320 30 5.0% 4.9% 4.8% 4.7% 5.2% 5.1% 1,015 305 936 383

R-3 KDX Izumi Residence F 1,350 1,380 30 4.6% 4.5% 4.4% 4.3% 4.8% 4.7% 1,120 260 1,050 329

R-4 KDX Chihaya Residence F 1,380 1,400 20 4.7% 4.6% 4.5% 4.4% 4.9% 4.8% 1,080 320 996 403

R-5KDX Sakaisuji HommachiResidence F 3,330 3,420 90 4.5% 4.4% 4.3% 4.2% 4.7% 4.6% 2,910 510 2,706 713

R-7 KDX Takarazuka Residence F 1,870 1,930 60 4.6% 4.5% 4.4% 4.3% 4.8% 4.7% 1,510 420 1,353 576

R-8 KDX Shimizu Residence F 2,000 2,020 20 4.8% 4.7% 4.6% 4.5% 5.0% 4.9% 1,680 340 1,559 460

R-9 KDX Residence Odori Koen F 952 968 16 4.9% 4.8% 4.7% 4.6% 5.1% 5.0% 765 203 779 188

R-10 KDX Residence Kikusui Yojo F 1,040 1,020 -20 5.1% 5.0% 4.9% 4.8% 5.3% 5.2% 830 190 786 233

R-11 KDX Residence Toyohira Koen F 547 549 2 5.2% 5.1% 5.0% 4.9% 5.4% 5.3% 445 104 467 81

R-13 KDX Residence Ichiban-cho D 693 706 13 5.0% 4.9% 4.8% 4.7% 5.2% 5.1% 530 176 503 202

R-15 KDX Residence Izumi Chuo D 602 613 11 5.1% 5.0% 4.9% 4.8% 5.3% 5.2% 480 133 456 156

R-16 KDX Residence Higashi-sakura I F 2,520 2,540 20 4.6% 4.5% 4.4% 4.3% 4.8% 4.7% 2,350 190 2,248 291

R-17 KDX Residence Higashi-sakura II F 1,010 1,020 10 4.6% 4.5% 4.4% 4.3% 4.8% 4.7% 900 120 863 156

R-18 KDX Residence Jingumae F 1,010 1,030 20 4.9% 4.8% 4.7% 4.6% 5.1% 5.0% 840 190 797 232

R-19 KDX Residence Nishi-oji D 917 938 21 4.7% 4.6% 4.5% 4.4% 4.9% 4.8% 813 125 780 157

R-20 KDX Residence Saiin D 512 512 - 4.7% 4.7% 4.5% 4.5% 4.9% 4.9% 440 72 419 92

R-21 KDX Residence Namba F 1,620 1,650 30 4.8% 4.7% 4.6% 4.5% 5.0% 4.9% 1,410 240 1,359 290

R-22 KDX Residence Namba-minami F 1,550 1,570 20 4.8% 4.7% 4.6% 4.5% 5.0% 4.9% 1,350 220 1,281 288

R-24 KDX Residence Ibaraki I・II F 1,440 1,424 -16 5.0% 4.9% 4.8% 4.7% 5.2% 5.1% 1,275 149 1,289 134

R-25 KDX Residence Toyonaka-minami F 869 860 -9 5.0% 4.9% 4.8% 4.7% 5.2% 5.1% 740 120 682 177

R-26 KDX Residence Moriguchi F 662 666 4 4.9% 4.8% 4.7% 4.6% 5.1% 5.0% 551 115 518 147

R-27 KDX Residence Sannomiya F 1,310 1,210 -100 4.5% 4.4% 4.3% 4.2% 4.7% 4.6% 1,080 130 1,079 130

R-28 Ashiya Royal Homes F 1,760 1,920 160 4.4% 4.3% 4.2% 4.1% 4.6% 4.5% 1,360 560 1,458 461





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R-29 KDX Residence Funairi Saiwai-cho F 678 703 25 5.5% 5.4% 5.3% 5.2% 5.7% 5.6% 588 115 553 149

R-30 KDX Residence Tenjin-higashi II F 887 873 -14 4.8% 4.7% 4.6% 4.5% 5.0% 4.9% 680 193 646 226

R-32 KDX Residence Nishi Koen F 875 876 1 4.8% 4.7% 4.6% 4.5% 5.0% 4.9% 763 113 728 147

R-33 KDX Residence Hirao Josui-machi F 903 913 10 4.6% 4.5% 4.4% 4.3% 4.8% 4.7% 760 153 738 174

R-34 Melody Heim Gotenyama F 518 531 13 5.5% 5.4% 5.3% 5.2% 5.7% 5.6% 400 131 423 107

R-35 Leopalace Flat Shin-sakae M 4,390 4,490 100 4.5% 4.4% 4.4% 4.3% 4.7% 4.6% 3,500 990 3,496 993

R-36 KDX Residence Konan Yamate F 1,120 1,130 10 4.5% 4.4% 4.3% 4.2% 4.7% 4.6% 973 157 969 160

R-37 KDX Residence Hommachibashi F 3,550 3,620 70 4.5% 4.4% 4.3% 4.2% 4.7% 4.6% 3,201 419 3,157 462

R-38 KDX Residence Minami-kusatsu D 2,370 2,410 40 5.4% 5.3% 5.2% 5.1% 5.6% 5.5% 1,974 435 1,987 422

R-39KDX Residence Ohori Harbor View Tower D 5,220 5,220 - 4.7% 4.6% 4.5% 4.4% 4.9% 4.8% 4,606 613 4,547 672

R-40 KDX Residence Minami-sanjo F 1,660 1,690 30 4.8% 4.7% 4.6% 4.5% 5.0% 4.9% 915 775 919 770

R-41 Serenite Kita-kyuhoji M 1,540 1,580 40 4.2% 4.1% 4.0% 3.9% 4.4% 4.3% 1,290 289 1,278 301

R-42 Serenite Nishinomiya Hommachi T 742 744 2 4.8% 4.8% 4.9% 4.9% 5.0% 5.0% 617 126 643 100

R-43 KDX Residence Nishijin T 1,670 1,690 20 4.7% 4.7% 4.8% 4.8% 4.9% 4.9% 1,600 90 1,747 -57

R-44 Serenite Kobe Motomachi T 2,580 2,600 20 4.6% 4.6% 4.7% 4.7% 4.8% 4.8% 2,390 210 2,492 107

R-45 KDX Residence Shukugawa Hills D 7,300 7,300 - 4.5% 4.4% 4.3% 4.2% 4.7% 4.6% 6,885 415 7,263 36

Subtotal / Average 66,815 67,036 799 4.7% 4.6% 4.5% 4.4% 4.9% 4.8% 56,617 10,418 55,969 11,066

Residential Facilities total /

Average210,561 218,433 4,495 4.3% 4.2% 4.2% 4.1% 4.5% 4.4% 179,123 39,309 179,117 39,315






55

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Health

care

facilitie

s

H-1 Irise Kamata/Yuseien D 1,120 1,120 - 4.7% 4.7% 4.5% 4.5% 4.9% 4.9% 1,120 - 1,093 26

H-2 Nichii Home Nakano-Minamidai D 1,780 1,780 - 4.4% 4.4% 4.2% 4.2% 4.6% 4.6% 1,780 - 1,772 7

H-3 Joy Stage Hachioji T 3,740 3,760 20 5.3% 5.2% 5.2% 5.1% 5.5% 5.4% 3,690 70 3,783 -23

H-4 Yuimaru Hijirigaoka F 1,120 1,120 - 5.0% 5.0% 4.8% 4.8% 5.2% 5.2% 1,120 - 1,094 25

H-5 Nichii Home Tama Plaza D 2,940 2,940 - 5.1% 5.1% 4.9% 4.9% 5.3% 5.3% 2,940 - 2,857 82

H-6 Ten T 2,640 2,660 20 6.1% 6.0% 6.2% 6.1% 6.3% 6.2% 2,630 30 2,576 83

H-7 Irise Nishioka F 855 857 2 5.3% 5.3% 5.1% 5.1% 5.5% 5.5% 858 -1 834 22

H-8 Izarie Eniwa Building F 1,680 1,740 60 6.1% 5.9% 5.9% 5.7% 6.3% 6.1% 1,660 80 1,608 131

H-9 Sawayaka Sakura Nibankan D 990 991 1 5.6% 5.6% 5.4% 5.4% 5.8% 5.8% 989 2 954 36

H-10 Activa Biwa T 6,560 6,560 - 5.7% 5.7% 5.8% 5.8% 5.9% 5.9% 6,560 - 6,429 130

H-11 Sompo Care LAVIERE Kobe Tarumi T 2,110 2,110 - 4.9% 4.9% 4.9% 4.9% 5.1% 5.1% 2,110 - 2,078 31

H-12 Granda Mondo Yakujin F 1,190 1,190 - 4.9% 4.9% 4.6% 4.6% 5.1% 5.1% 1,190 - 1,162 27

H-13 Excellent Nishinomiya T 973 975 2 5.0% 5.0% 5.0% 5.0% 5.2% 5.2% 971 4 944 30

H-14 Gran Hills Ogawarako T 1,380 1,380 - 7.2% 7.2% 7.1% 7.1% 7.4% 7.4% 1,380 - 1,328 51

H-15 Excellent Kitano T 785 780 -5 4.7% 4.7% 4.7% 4.7% 4.9% 4.9% 737 43 761 18

H-16 Anesis Teradacho D 3,630 3,630 - 5.0% 5.0% 4.8% 4.8% 5.2% 5.2% 3,490 140 3,557 72

H-17 Rococo-riha D 2,180 2,170 -10 5.1% 5.1% 4.9% 4.9% 5.3% 5.3% 2,100 70 2,096 73

H-18 Orage Suma T 2,820 2,810 -10 5.1% 5.2% 5.0% 5.0% 5.3% 5.4% 2,810 - 2,827 -17

H-19 Canadian Hill T 1,870 1,870 - 4.7% 4.7% 4.6% 4.6% 4.9% 4.9% 1,830 40 1,843 26

H-20 Anesis Hyogo T 1,430 1,440 10 4.8% 4.8% 4.7% 4.7% 5.0% 5.0% 1,420 20 1,422 17

H-21 Plaisant Grand Ota tamagawa F 3,130 3,180 50 4.1% 4.0% 3.9% 3.8% 4.3% 4.2% 3,057 122 3,241 -61

H-22 Tsukui Sun-shine Machida F - 7,070 - - 4.3% - 4.1% - 4.5% 6,934 135 7,187 -117

H-23 Serabi Ebisu M - 1,700 - - 4.0% - 3.8% - 4.2% 1,690 10 1,720 -20

H-24 Arute Ishiyagawa T - 1,410 - - 5.4% - 5.1% - 5.2% 1,061 349 1,201 208

Subtotal / Average 44,923 55,243 140 5.2% 5.0% 5.1% 4.9% 5.4% 5.2% 54,128 1,114 54,378 864

Grand total 255,484 273,676 233,251 233,496 40,179







56

Appendices

Note 1: “Rentable Units” and “Rentable Area” don’t include healthcare facilities.

Note 2: NOI=Operating Revenues – Operating Expenses(ex. Depreciation) (Rounded down to the nearest one decimal places)

Summary of Portfolio Performance

10th fiscal period 11th fiscal period 12th fiscal period 13th fiscal period 14th fiscal period 15th fiscal period

(as of Jan. 31, 2017) (as of Jul. 31, 2017) (as of Jan. 31, 2018) (as of Jul. 31, 2018) (as of Jan. 31, 2019) (as of Jul. 31, 2019)

Number of Properties 113 props 113 props 115 props 129 props 138 props 143 props

Properties Acquired during the period 10 props 0 props 2 props 1 props 10 props 6 props

Properties Transferred during the period 2 Props 0 Props 0 Props 1 Props 1 Props 1 Props

Total Acquisition Price 155,069 million 155,069 million 164,169 million 192,889 million 220,916 million 233,251 million

Total Book Value 156,805 million 156,161 million 165,040 million 193,148 million 221,356 million 233,496 million

Total Appraisal Value 180,618 million 182,410 million 192,137 million 223,857 million 256,062 million 273,676 million

Rentable Units(1) 7,518 units 7,518 units 7,888 units 7,794 units 8,280 units 8,346 units

Rentable Area(1) 292,324.33 m2 292,324.33 m2 303,608.43 m2 301,462.41 m2 329,477.93 m2 335,406.34 m2

Leasing Business Revenues 5,437 million 5,574 million 5,671 million 6,655 million 7,605 million 7,933 million

Leasing Business Expenses (ex. Depreciation) 1,172 million 1,239 million 1,185 million 1,410 million 1,451 million 1,524 million

NOI (Net Operating Income)(2) 4,265 million 4,335 million 4,486 million 5,245 million 6,154 million 6,408 million

NOI Cap Rate (per year) 5.5 % 5.6 % 5.4 % 5.4 % 5.5 % 5.5 %

Capital Expenditure 220 million 241 million 286 million 436 million 614 million 612 million

Depreciation 878 million 884 million 921 million 1,144 million 1,343 million 1,391 million

Depreciation Rate (per acquisition price, year) 1.1 % 1.2 % 1.1 % 1.2 % 1.2 % 1.2 %

NOI Cap Rate after Depreciation (per year) 4.4 % 4.5 % 4.3 % 4.2 % 4.3 % 4.3 %

Trends in Portfolio Performance

57

Appendices

Portfolio Performance in 1H 2019 1/6

No. Property NameAcquisition

Price

Book

Value

Appraisal

ValueType(1)

Rent

able

Units

Rentable

Area

Rented

Area

Occupa

ncy

Rate

Oper

ating

Days

Leasing

Business

Revenues

Leasing

Business

Expenses

NOI Depreciation

Leasing

Business

Income

NOI Cap

Rate

NOI Cap

Rate after

Depreciation

(unit) （m2）（m2）（%） (days) a b c [a-b] d e [c-d] (per year) (per year)

To

kyo

Metro

po

litan

Are

a

T-1 KDX Daikanyama Residence 4,700,000 4,781,395 6,200,000 SF 86 5,338.99 5,271.41 98.7% 181 164,960 29,882 135,078 17,326 117,752 5.8% 5.1%

T-3 KDX Odemma Residence 1,775,000 1,708,097 2,170,000 SF 54 2,353.23 2,268.67 96.4% 181 58,609 11,783 46,826 10,879 35,947 5.3% 4.1%

T-4 KDX Iwamoto-cho Residence 822,000 787,260 1,010,000 SF 36 1,131.24 1,108.68 98.0% 181 28,420 5,751 22,668 5,269 17,399 5.6% 4.3%

T-5 KDX Bunkyo Sengoku Residence 1,488,000 1,450,074 1,810,000 S 77 2,054.10 2,054.10 100.0% 181 50,856 10,730 40,126 6,526 33,599 5.4% 4.6%

T-6 KDX Azumabashi Residence 650,000 615,608 914,000 S 41 1,054.83 1,007.35 95.5% 181 25,528 5,059 20,468 4,938 15,530 6.4% 4.8%

T-7 KDX Shimura Sakaue Residence 2,830,000 2,663,587 3,510,000 F 85 6,117.48 6,032.88 98.6% 181 103,501 24,059 79,442 21,687 57,754 5.7% 4.1%

T-9Cosmo Heim Motosumiyoshi(land) 1,750,000 1,798,041 1,840,000 - - - - - 181 43,750 1,354 42,395 - 42,395 4.9% 4.9%

T-10 KDX Musashi Nakahara Residence 637,000 632,707 741,000 F 35 2,123.46 2,002.50 94.3% 181 27,206 7,295 19,911 3,727 16,183 6.3% 5.1%

T-11 KDX Chiba Chuo Residence 1,480,000 1,316,389 1,830,000 S 106 3,546.91 3,480.11 98.1% 181 64,066 13,916 50,149 17,281 32,868 6.8% 4.5%

T-12KDX Kawaguchi Saiwai-choResidence 1,150,000 1,109,262 1,450,000 SF 61 2,491.66 2,407.67 96.6% 181 49,317 12,756 36,561 7,344 29,217 6.4% 5.1%

T-13 KDX Residence Shirokane I 3,000,000 3,084,350 3,590,000 SF 50 3,617.32 3,571.56 98.7% 181 113,143 33,466 79,676 8,656 71,019 5.4% 4.8%

T-15 KDX Residence Shirokane II 2,800,000 2,854,144 3,550,000 S 85 2,889.66 2,755.49 95.4% 181 91,949 16,274 75,674 7,313 68,361 5.5% 4.9%

T-16 KDX Residence Minami-aoyama 2,230,000 2,238,772 2,530,000 SF 20 1,680.79 1,680.79 100.0% 181 65,349 10,863 54,485 3,306 51,178 4.9% 4.6%

T-17 KDX Residence Minami-azabu 2,080,000 2,072,185 2,720,000 SF 62 2,785.42 2,670.76 95.9% 181 73,631 11,988 61,642 7,052 54,590 6.0% 5.3%

T-18 KDX Residence Shiba Koen 1,781,000 1,761,004 2,370,000 SF 64 2,507.52 2,404.99 95.9% 181 65,707 11,223 54,483 5,806 48,676 6.2% 5.5%

T-19 KDX Residence Azabu East 1,560,000 1,592,286 2,000,000 S 76 1,849.00 1,806.98 97.7% 181 55,935 12,887 43,047 6,291 36,756 5.6% 4.8%

T-20 KDX Residence Takanawa 770,000 761,754 1,060,000 SF 27 1,034.27 1,034.27 100.0% 181 27,543 6,199 21,343 2,765 18,577 5.6% 4.9%

T-21 KDX Residence Nishihara 1,450,000 1,492,755 1,900,000 SF 39 2,310.08 2,310.08 100.0% 181 52,255 14,951 37,303 6,060 31,243 5.2% 4.3%

T-22 KDX Residence Daikanyama II 730,000 759,422 1,000,000 F 17 985.10 985.10 100.0% 181 28,696 5,226 23,470 1,274 22,195 6.5% 6.1%

T-23 KDX Residence Sendagaya 650,000 638,001 844,000 SF 16 748.96 702.58 93.8% 181 22,902 5,258 17,643 2,806 14,837 5.5% 4.6%

T-24KDX Residence NihombashiSuitengu 3,240,000 3,154,271 4,020,000 F 79 5,534.86 5,534.86 100.0% 181 97,662 10,803 86,858 17,800 69,057 5.4% 4.3%

T-25KDX Residence NihombashiHakozaki 1,147,000 1,156,184 1,430,000 S 60 1,537.38 1,495.47 97.3% 181 41,432 8,872 32,560 6,899 25,660 5.7% 4.5%

T-26 KDX Residence Higashi-shinjuku 3,270,000 3,236,356 4,090,000 S 179 4,358.43 4,290.27 98.4% 181 111,378 19,226 92,152 11,784 80,367 5.7% 5.0%

T-27 KDX Residence Yotsuya 2,260,000 2,297,531 2,870,000 F 42 3,101.16 3,042.46 98.1% 181 79,625 19,959 59,665 10,024 49,640 5.3% 4.4%

T-28 KDX Residence Nishi-shinjuku 1,000,000 996,582 1,330,000 S 54 1,345.92 1,294.19 96.2% 181 35,721 7,821 27,899 4,006 23,893 5.6% 4.8%

T-29 KDX Residence Kagurazaka 720,000 710,811 930,000 S 34 890.93 841.11 94.4% 181 25,587 5,883 19,704 3,372 16,332 5.5% 4.6%

T-30 KDX Residence Futako Tamagawa 1,250,000 1,276,225 1,480,000 F 38 2,339.62 2,339.62 100.0% 181 42,861 7,758 35,103 4,733 30,369 5.7% 4.9%


Note 1: Type means principal room type of the property (If applicable to some types, type of the largest footprint unit)

Single （S）: （intended primarily for single-person households）［footprint of equal or more than 18m2 and less than 30m2 and more than 20 rentable units per property］, Small Family (SF): （intended primarily for households of couples or families

with infants）［footprint of equal or more than 30m2 and less than 60m2 and more than 15 rentable units per property］, Family (F): （intended primarily for households of three or more families）［ footprint of equal or more than 60m2 and more

than 5 rentable units per property]

58

Appendices



Price

Book

Value

Appraisal

ValueType(1)

Rent

able

Units

Rentable

Area

Rented

Area

Occupa

ncy

Rate

Oper

ating

Days

Leasing

Business

Revenues

Leasing

Business

Expenses

NOI Depreciation

Leasing

Business

Income

NOI Cap

Rate

NOI Cap

Rate after

Depreciation


To

kyo

Metro

po

litan

Are

a

T-31 KDX Residence Komazawa Koen 920,000 905,115 1,120,000 SF 32 1,020.18 987.68 96.8% 181 28,984 5,533 23,451 4,685 18,765 5.1% 4.1%

T-32 KDX Residence Misyuku 760,000 752,319 958,000 S 39 1,103.82 1,103.82 100.0% 181 25,741 6,780 18,961 3,127 15,833 5.0% 4.2%

T-33 KDX Residence Yoga 700,000 695,458 864,000 S 38 1,012.80 1,012.80 100.0% 181 24,079 4,199 19,879 2,653 17,226 5.7% 5.0%

T-34 KDX Residence Shimouma 600,000 598,537 765,000 S 29 829.05 829.05 100.0% 181 21,209 4,645 16,563 2,258 14,305 5.6% 4.8%

T-35 Raffine Minami-magome 1,250,000 1,241,276 1,450,000 S 56 2,408.56 2,408.56 100.0% 181 41,292 3,169 38,122 3,375 34,747 6.2% 5.6%

T-36 KDX Residence Yukigaya Otsuka 1,050,000 1,024,350 1,340,000 S 72 1,526.98 1,464.01 95.9% 181 39,538 8,610 30,927 5,469 25,458 5.9% 4.9%

T-37 KDX Residence Denen Chofu 1,000,000 1,062,322 1,280,000 F 36 2,359.44 2,359.44 100.0% 181 38,418 5,819 32,599 4,417 28,182 6.6% 5.7%

T-38 KDX Residence Tamagawa 776,000 739,034 942,000 S 52 1,170.40 1,149.94 98.3% 181 29,806 6,602 23,204 5,909 17,294 6.0% 4.5%

T-39 KDX Residence Monzennakacho 773,000 766,093 1,010,000 S 49 1,171.41 1,171.41 100.0% 181 29,005 7,857 21,147 4,089 17,058 5.5% 4.5%

T-40 KDX Residence Okachimachi 850,000 870,701 1,060,000 S 51 1,329.79 1,329.79 100.0% 181 32,983 8,516 24,466 3,842 20,624 5.8% 4.9%

T-41 KDX Residence Moto-asakusa 800,000 788,555 1,010,000 SF 44 1,314.91 1,314.91 100.0% 181 30,691 5,843 24,848 4,537 20,311 6.3% 5.1%

T-42 KDX Residence Itabashi Honcho 620,000 599,440 767,000 S 46 1,127.58 1,127.58 100.0% 181 24,246 5,451 18,794 4,238 14,556 6.1% 4.7%

T-43 KDX Residence Azusawa 550,000 551,697 654,000 S 39 989.82 958.14 96.8% 181 20,546 4,795 15,750 3,371 12,379 5.8% 4.5%

T-44 KDX Residence Tobu Nerima 420,000 396,367 522,000 S 37 931.82 931.82 100.0% 181 18,663 4,506 14,157 3,782 10,374 6.8% 5.0%

T-45 KDX Residence Yokohama Kannai 800,000 776,641 985,000 S 72 1,602.16 1,561.41 97.5% 181 35,517 8,655 26,862 6,049 20,812 6.8% 5.2%

T-46 KDX Residence Miyamaedaira 999,000 1,001,354 1,140,000 F 40 2,448.27 2,337.54 95.5% 181 37,338 7,509 29,828 4,912 24,916 6.0% 5.0%

T-47 KDX Residence Machida 1,800,000 1,709,588 2,080,000 F 52 3,832.53 3,832.53 100.0% 181 65,141 14,901 50,239 15,039 35,200 5.6% 3.9%

T-48 KDX Residence Kinshicho 1,350,000 1,339,150 1,690,000 F 33 2,024.81 1,896.33 93.7% 181 44,100 8,125 35,974 6,960 29,014 5.4% 4.3%

T-49KDX Residence NihombashiHamacho 996,000 1,001,248 1,250,000 F 28 1,756.27 1,756.27 100.0% 181 30,540 4,136 26,403 4,195 22,207 5.3% 4.5%

T-50KDX Residence NihombashiNingyocho 530,000 560,751 682,000 S 27 877.14 877.14 100.0% 181 20,000 3,608 16,391 2,243 14,147 6.2% 5.4%

T-51 KDX Residence Jiyugaoka 1,268,000 1,319,800 1,620,000 SF 48 1,637.00 1,637.00 100.0% 181 41,375 7,239 34,135 4,245 29,890 5.4% 4.8%

T-52 KDX Residence Togoshi 3,745,000 3,745,258 4,800,000 SF 144 4,591.76 4,497.84 98.0% 181 122,275 20,677 101,597 17,299 84,298 5.5% 4.5%

T-53KDX Residence Shinagawa Seaside 2,593,000 2,575,662 3,340,000 S 127 3,314.75 3,259.00 98.3% 181 87,512 17,938 69,574 12,806 56,767 5.4% 4.4%

T-54 KDX Residence Ojima 1,857,000 1,833,745 2,370,000 S 117 2,372.67 2,311.74 97.4% 181 64,304 15,068 49,236 11,115 38,120 5.3% 4.1%

T-55 KDX Residence Oyama 2,679,000 2,638,743 3,310,000 SF 145 4,009.07 3,890.40 97.0% 181 94,215 18,434 75,780 16,608 59,171 5.7% 4.5%

T-56 KDX Residence Hanzomon 4,832,000 4,950,518 5,650,000 F 85 4,854.23 4,770.77 98.3% 181 135,357 19,922 115,434 14,785 100,648 4.8% 4.2%

T-57 B-Site Akihabara 850,000 862,681 1,010,000 S 52 1,254.50 1,254.50 100.0% 181 23,882 3,293 20,588 2,535 18,053 4.9% 4.3%






59

Appendices



Price

Book

Value

Appraisal

ValueType(1)

Rent

able

Units

Rentable

Area

Rented

Area

Occupa

ncy

Rate

Oper

ating

Days

Leasing

Business

Revenues

Leasing

Business

Expenses

NOI Depreciation

Leasing

Business

Income

NOI Cap

Rate

NOI Cap

Rate after

Depreciation


To

kyo

Metro

po

litan

Are

a

T-58 KDX Residence Kagurazaka Dori 1,360,000 1,380,424 1,940,000 S 70 1,809.84 1,784.37 98.6% 181 53,316 12,133 41,182 3,716 37,466 6.1% 5.6%

T-59 KDX Residence Sendagi 2,200,000 2,355,270 2,510,000 F 40 3,159.89 3,005.85 95.1% 181 66,336 12,153 54,182 8,815 45,366 5.0% 4.2%

T-60 KDX Residence Seijo 1,400,000 1,421,317 1,600,000 SF 38 2,198.56 2,100.63 95.5% 181 42,556 7,769 34,786 4,671 30,115 5.0% 4.3%

T-61 KDX Residence Akihabara 1,250,000 1,249,354 1,560,000 SF 32 1,929.61 1,755.82 91.0% 181 41,056 7,604 33,452 6,622 26,829 5.4% 4.3%

T-62 KDX Residence Iriya 1,062,000 1,062,668 1,400,000 S 57 1,899.29 1,899.29 100.0% 181 40,160 7,433 32,727 6,205 26,521 6.2% 5.0%

T-63 KDX Residence Tachikawa 3,026,200 2,994,209 3,650,000 S 174 4,314.87 4,288.37 99.4% 181 101,348 17,967 83,380 21,257 62,122 5.6% 4.1%

T-64 KDX Residence Tsurumi 1,050,000 1,149,432 1,500,000 SF 59 3,499.84 3,442.34 98.4% 181 53,371 12,027 41,343 7,234 34,108 7.9% 6.6%

T-65 KDX Residence Morishita Chitose 1,100,000 1,106,231 1,300,000 S 65 1,614.28 1,583.32 98.1% 181 39,299 7,329 31,970 5,703 26,267 5.9% 4.8%

T-66 KDX Residence Akasaka 1,150,000 1,191,057 1,760,000 SF 28 1,180.71 1,180.71 100.0% 181 40,417 5,138 35,279 4,195 31,083 6.2% 5.5%

T-67 KDX Residence Kanda 700,000 722,019 1,110,000 SF 30 1,031.09 1,031.09 100.0% 181 29,930 5,536 24,394 3,682 20,711 7.0% 6.0%

T-68 KDX Residence Ebisu 2,845,000 2,939,271 4,320,000 SF 65 2,659.66 2,588.22 97.3% 181 94,712 10,753 83,959 11,269 72,690 6.0% 5.2%

T-69 KDX Residence Nishi-magome 1,130,000 1,170,005 1,260,000 S 47 1,297.27 1,272.06 98.1% 181 33,739 7,646 26,093 4,885 21,208 4.7% 3.8%

T-70 KDX Residence Nishi-azabu 1,224,000 1,240,709 1,710,000 SF 33 1,357.88 1,281.12 94.3% 181 40,538 8,102 32,435 4,109 28,326 5.3% 4.7%

T-71 KDX Residence Azabu Sendaizaka 792,300 806,158 1,090,000 S 30 878.50 878.50 100.0% 181 27,752 5,927 21,824 2,788 19,036 5.6% 4.8%

T-72 KDX Residence Waseda Tsurumaki 561,000 566,070 834,000 S 39 808.54 788.88 97.6% 181 21,899 5,449 16,450 2,974 13,475 5.9% 4.8%

T-73 KDX Residence Bunkyo Yushima 695,000 702,743 975,000 S 38 939.89 939.89 100.0% 181 25,046 5,822 19,223 3,129 16,093 5.6% 4.7%

T-74 KDX Residence Kamishakujii 648,000 657,712 820,000 S 47 1,032.18 1,008.11 97.7% 181 24,625 6,251 18,374 3,738 14,635 5.7% 4.6%

T-75 KDX Residence Shin-otsuka 764,000 775,530 993,000 S 40 872.00 872.00 100.0% 181 22,608 1,854 20,753 3,433 17,319 5.5% 4.6%

T-76 KDX Residence Sakurajosui 894,000 906,671 1,160,000 S 43 1,227.16 1,176.76 95.9% 181 29,996 8,002 21,993 4,116 17,877 5.0% 4.0%

T-77 KDX Residence Ryogoku 842,000 855,030 1,130,000 S 36 1,190.53 1,190.53 100.0% 181 29,691 4,766 24,925 4,392 20,532 6.0% 4.9%

T-78 KDX Residence Toyosu 7,500,000 7,734,366 7,640,000 S 242 6,811.38 6,811.38 100.0% 181 181,058 16,337 164,721 28,285 136,435 4.4% 3.7%

T-79 KDX Residence Asagaya 1,930,000 1,964,865 2,170,000 SF 44 1,996.08 1,952.84 97.8% 181 49,108 6,644 42,464 4,168 38,296 4.4% 4.0%

T-80 KDX Residence Hiyoshi 2,635,300 2,699,741 2,730,000 F 92 6,131.93 5,960.46 97.2% 181 77,800 12,690 65,110 10,329 54,780 5.0% 4.2%

T-81 KDX Residence Kamikitazawa 1,360,000 1,395,223 1,410,000 SF 39 1,971.07 1,819.62 92.3% 181 34,703 7,941 26,761 2,594 24,166 4.0% 3.6%

T-82 KDX Residence Kaminoge 1,111,000 1,141,094 1,230,000 S 34 1,224.87 1,224.87 100.0% 181 26,206 2,135 24,071 2,717 21,353 4.4% 3.9%

T-83 KDX Residence Higashi-Asakusa 687,730 709,880 737,000 S 36 1,013.40 975.03 96.2% 161 18,914 3,245 15,669 2,446 13,223 5.2% 4.4%

Subtotal / Average 122,505,530 123,148,541 151,397,000 4,611 172,650.36 169,237.43 98.0% 4,100,565 771,764 3,328,801 546,978 2,781,822 5.5% 4.6%






60

Appendices



Price

Book

Value

Appraisal

ValueType(1)

Rent

able

Units

Rentable

Area

Rented

Area

Occupa

ncy

Rate

Oper

ating

Days

Leasing

Business

Revenues

Leasing

Business

Expenses

NOI Depreciation

Leasing

Business

Income

NOI Cap

Rate

NOI Cap

Rate after

Depreciation


Oth

er R

eg

ion

al A

reas

R-2 KDX JozenjiDori Residence 1,015,000 936,641 1,320,000 S 92 3,330.15 2,905.10 87.2% 181 49,736 12,040 37,696 10,417 27,278 7.5% 5.4%

R-3 KDX Izumi Residence 1,120,000 1,050,958 1,380,000 F 40 2,798.20 2,798.20 100.0% 181 43,130 9,185 33,944 9,245 24,698 6.1% 4.4%

R-4 KDX Chihaya Residence 1,080,000 996,756 1,400,000 SF 92 2,936.40 2,750.82 93.7% 181 48,072 10,619 37,452 10,057 27,394 7.0% 5.1%

R-5KDX Sakaisuji HommachiResidence 2,910,000 2,706,478 3,420,000 SF 160 6,385.70 6,130.42 96.0% 181 107,710 27,337 80,373 23,905 56,467 5.6% 3.9%

R-7 KDX Takarazuka Residence 1,510,000 1,353,843 1,930,000 F 80 4,631.16 4,365.44 94.3% 181 58,665 11,915 46,749 16,576 30,172 6.2% 4.0%

R-8 KDX Shimizu Residence 1,680,000 1,559,548 2,020,000 SF 148 6,255.16 5,843.57 93.4% 181 71,832 19,166 52,666 14,237 38,429 6.3% 4.6%

R-9 KDX Residence Odori Koen 765,000 779,136 968,000 SF 78 2,762.76 2,584.14 93.5% 181 31,774 14,349 17,425 8,043 9,381 4.6% 2.5%

R-10 KDX Residence Kikusui Yojo 830,000 786,731 1,020,000 SF 84 3,413.06 3,341.86 97.9% 181 39,506 10,346 29,160 7,555 21,604 7.1% 5.2%

R-11 KDX Residence Toyohira Koen 445,000 467,209 549,000 SF 65 2,253.81 2,114.76 93.8% 181 23,507 7,750 15,757 4,859 10,897 7.1% 4.9%

R-13 KDX Residence Ichiban-cho 530,000 503,383 706,000 SF 45 1,818.09 1,601.33 88.1% 181 25,648 7,974 17,674 5,083 12,590 6.7% 4.8%

R-14 KDX Residence Kotodai 480,000 456,198 613,000 SF 40 2,159.25 2,047.88 94.8% 181 23,065 6,688 16,377 4,509 11,867 6.9% 5.0%

R-15 KDX Residence Izumi Chuo 2,350,000 2,248,386 2,540,000 SF 187 6,221.83 5,989.08 96.3% 181 91,858 32,918 58,939 17,818 41,121 5.1% 3.5%

R-16 KDX Residence Higashi-sakura I 900,000 863,964 1,020,000 SF 66 2,655.31 2,496.61 94.0% 181 37,912 13,834 24,078 7,021 17,056 5.4% 3.8%

R-17 KDX Residence Higashi-sakura II 840,000 797,432 1,030,000 SF 95 2,724.19 2,614.53 96.0% 181 39,734 10,588 29,146 7,357 21,788 7.0% 5.2%

R-18 KDX Residence Jingumae 813,000 780,510 938,000 S 76 2,353.55 2,302.55 97.8% 181 34,424 7,411 27,012 6,365 20,647 6.7% 5.1%

R-19 KDX Residence Nishi-oji 440,000 419,747 512,000 S 49 1,094.81 1,048.23 95.7% 181 18,873 5,399 13,474 3,861 9,612 6.2% 4.4%

R-20 KDX Residence Saiin 1,410,000 1,359,311 1,650,000 S 118 3,387.30 3,310.57 97.7% 181 56,119 11,323 44,795 9,990 34,805 6.4% 5.0%

R-21 KDX Residence Namba 1,350,000 1,281,299 1,570,000 S 131 3,813.31 3,711.07 97.3% 181 54,892 11,545 43,346 11,819 31,526 6.5% 4.7%

R-22 KDX Residence Namba-minami - - - - - - - - - 19 279 -259 - -259 - -

R-24 KDX Residence Ibaraki I・II 1,275,000 1,289,374 1,424,000 F 61 4,701.87 4,625.13 98.4% 181 54,297 13,012 41,285 6,682 34,602 6.5% 5.5%

R-25 KDX Residence Toyonaka-minami 740,000 682,585 860,000 SF 70 2,024.50 1,934.41 95.6% 181 29,855 6,488 23,366 8,175 15,191 6.4% 4.1%

R-26 KDX Residence Moriguchi 551,000 518,256 666,000 F 28 1,942.78 1,882.27 96.9% 181 23,169 6,145 17,023 5,459 11,564 6.2% 4.2%

R-27 KDX Residence Sannomiya 1,080,000 1,079,292 1,210,000 S 86 2,292.72 2,242.19 97.8% 181 39,525 10,497 29,027 8,120 20,907 5.4% 3.9%

R-28 Ashiya Royal Homes 1,360,000 1,458,021 1,920,000 F 21 3,999.01 3,504.86 87.6% 181 65,775 15,764 50,011 4,891 45,119 7.4% 6.7%






61

Appendices



Price

Book

Value

Appraisal

ValueType(1)

Rent

able

Units

Rentable

Area

Rented

Area

Occupa

ncy

Rate

Oper

ating

Days

Leasing

Business

Revenues

Leasing

Business

Expenses

NOI Depreciation

Leasing

Business

Income

NOI Cap

Rate

NOI Cap

Rate after

Depreciation


Oth

er R

eg

ion

al A

reas

R-29 KDX Residence Funairi Saiwai-cho 588,000 553,409 703,000 S 64 1,889.53 1,712.01 90.6% 181 27,230 5,774 21,455 5,378 16,077 7.4% 5.5%

R-30 KDX Residence Tenjin-higashi II 680,000 646,844 873,000 SF 63 2,602.53 2,561.22 98.4% 181 31,116 7,694 23,421 6,253 17,167 6.9% 5.1%

R-32 KDX Residence Nishi Koen 763,000 728,721 876,000 F 36 2,522.16 2,303.08 91.3% 181 31,044 10,015 21,029 6,401 14,627 5.6% 3.9%

R-33 KDX Residence Hirao Josui-machi 760,000 738,781 913,000 F 24 2,098.68 1,939.08 92.4% 181 28,341 4,868 23,472 4,809 18,662 6.2% 5.0%

R-34 Melody Heim Gotenyama 400,000 423,082 531,000 F 36 2,297.24 2,297.24 100.0% 181 22,126 5,462 16,663 2,271 14,392 8.4% 7.3%

R-35 Leopalace Flat Shin-sakae 3,500,000 3,496,847 4,490,000 S 274 11,589.95 11,589.95 100.0% 181 121,557 15,033 106,523 33,321 73,202 6.1% 4.2%

R-36 KDX Residence Konan Yamate 973,000 969,112 1,130,000 SF 55 1,923.22 1,923.22 100.0% 181 32,229 7,204 25,025 4,921 20,104 5.2% 4.2%

R-37 KDX Residence Hommachibashi 3,201,000 3,157,760 3,620,000 SF 134 6,511.88 6,285.09 96.5% 181 107,699 24,347 83,351 22,035 61,316 5.3% 3.9%

R-38 KDX Residence Minami-kusatsu 1,974,666 1,987,934 2,410,000 S 170 5,735.96 5,735.96 100.0% 181 104,357 29,408 74,949 18,323 56,625 7.7% 5.8%

R-39KDX Residence Ohori Harbor View Tower 4,606,296 4,547,881 5,220,000 SF 212 11,855.63 9,106.54 76.8% 181 189,098 41,139 147,959 42,600 105,358 6.5% 4.6%

R-40 KDX Residence Minami-sanjo 915,000 919,749 1,690,000 SF 114 5,269.39 5,269.39 100.0% 181 55,623 17,666 37,957 11,257 26,700 8.4% 5.9%

R-41 Serenite Kita-kyuhoji 1,290,740 1,278,265 1,580,000 S 85 2,277.14 2,277.14 100.0% 181 43,356 11,337 32,018 10,156 21,861 5.0% 3.4%

R-42 Serenite Nishinomiya Hommachi 617,048 643,196 744,000 S 51 1,351.68 1,351.68 100.0% 181 23,691 5,458 18,233 4,756 13,476 6.0% 4.4%

R-43 KDX Residence Nishijin 1,600,000 1,747,020 1,690,000 SF 128 4,472.72 4,331.38 96.8% 181 57,987 23,727 34,259 7,553 26,706 4.3% 3.4%

R-44 Serenite Kobe Motomachi 2,390,000 2,492,115 2,600,000 S 138 3,787.85 3,680.96 97.2% 181 76,283 15,466 60,817 14,601 46,215 5.1% 3.9%

R-45 KDX Residence Shukugawa Hills 6,884,800 7,263,622 7,300,000 F 239 17,575.39 16,504.36 93.9% 181 206,067 64,357 141,709 30,313 111,395 4.2% 3.3%

Subtotal / Average 56,617,551 55,969,416 67,036,000 3,735 159,715.87 151,013.32 94.6% 2,226,921 571,546 1,655,374 437,015 1,218,359 5.8% 4.3%

Residential facilities total /

Average179,123,081 179,117,957 218,433,000 8,346 332,366.23 320,250.75 96.4% 6,327,486 1,343,311 4,984,175 989,993 4,000,181 5.6% 4.5%






62

Appendices


Price

Book

Value

Appraisal

ValueFacility Type(1) Rentable

Area

Rentable

Units

Capaci

ty

Occupan

cy Rate

Actual Occupancy

Rate(2)

Utilization Rate(3)

Oper

ating

Days

NOI Depreciation

Leasing

Business

Income

NOI

Cap

Rate

NOI Cap

Rate after

Depreciation

（m2） (unit) (people) 2019.6 (days) a b c [a-b](per

year)(per year)

Health

care

facilitie

s

H-1 Irise Kamata/Yuseien 1,120,000 1,093,292 1,120,000 Nursing care 2,086.40 48 55 100.0% 97.9% 181 27,769 11,696 16,072 5.0% 2.9%

H-2 Nichii Home Nakano-Minamidai 1,780,000 1,772,702 1,780,000 Nursing care 3,339.00 83 83 100.0% 79.5% 181 44,846 4,371 40,475 5.1% 4.6%

H-3 Joy Stage Hachioji 3,690,000 3,783,647 3,760,000 Nursing care 13,812.27 232 263 100.0% 94.8% 181 98,576 28,772 69,803 5.4% 3.8%

H-4 Yuimaru Hijirigaoka 1,120,000 1,094,644 1,120,000 Residential 4,385.53 70 109 100.0% 100.0% 181 30,301 9,048 21,252 5.5% 3.8%

H-5 Nichii Home Tama Plaza 2,940,000 2,857,527 2,940,000 Nursing care 8,208.65 154 158 100.0% 84.4% 181 81,200 30,556 50,643 5.6% 3.5%

H-6 Ten 2,630,000 2,576,563 2,660,000 Nursing care 6,473.60 85 89 100.0% 94.1% 181 83,385 28,051 55,333 6.4% 4.2%

H-7 Irise Nishioka 858,000 834,775 857,000 Residential 3,140.27 83 83 100.0% 89.2% 181 23,342 9,189 14,153 5.5% 3.3%

H-8 Izarie Eniwa Building 1,660,000 1,608,533 1,740,000 Nursing care 5,343.33 73 73 100.0% 86.3% 181 51,437 18,263 33,173 6.2% 4.0%

H-9 Sawayaka Sakura Nibankan 989,000 954,187 991,000 Nursing care 3,628.51 92 92 100.0% 100.0% 181 28,549 12,286 16,262 5.8% 3.3%

H-10 Activa Biwa 6,560,000 6,429,113 6,560,000 Nursing care 39,649.84 384 445 100.0% 96.9% 181 223,334 61,714 161,619 6.9% 5.0%

H-11 Sompo Care LAVIERE Kobe Tarumi 2,110,000 2,078,021 2,110,000 Nursing care 4,493.35 100 100 100.0% 98.0% 181 52,999 11,826 41,173 5.1% 3.9%

H-12 Granda Mondo Yakujin 1,190,000 1,162,169 1,190,000 Residential 3,287.80 62 63 100.0% (Undisclosed) 181 31,486 9,982 21,503 5.3% 3.6%

H-13 Excellent Nishinomiya 971,000 944,010 975,000 Nursing care 2,685.48 67 70 100.0% 97.0% 181 24,916 9,525 15,390 5.2% 3.2%

H-14 Gran Hills Ogawarako 1,380,000 1,328,783 1,380,000Serviced

housing4,180.28 103 107 100.0% 100.0% 181 51,341 18,076 33,264 7.5% 4.9%

H-15 Excellent Kitano 737,000 761,959 780,000 Residential 1,339.58 41 41 100.0% 100.0% 181 18,354 4,157 14,197 5.0% 3.9%

H-16 Anesis Teradacho 3,490,000 3,557,533 3,630,000Nursing & health

(with Nursing care) 7,856.6445

100150

100100.0%

97.0%

98.0%181 97,129 31,911 65,217 5.6% 3.8%

H-17 Rococo-riha 2,100,000 2,096,208 2,170,000 Nursing & health 3,860.29 52 100 100.0% 97.9% 181 57,331 16,586 40,745 5.5% 3.9%

H-18 Orage Suma 2,810,000 2,827,605 2,810,000 Nursing & health(with Serviced housing) 5,995.74

100

35100

40100.0%

86.9%

97.1%181 79,039 23,822 55,217 5.7% 4.0%

H-19 Canadian Hill 1,830,000 1,843,722 1,870,000 Nursing & health 3,731.26 40 115 100.0% 93.7% 181 46,799 7,572 39,226 5.2% 4.3%

H-20 Anesis Hyogo 1,420,000 1,422,484 1,440,000 Nursing & health 4,415.16 58 100 100.0% 92.8% 181 37,902 10,431 27,470 5.4% 3.9%

H-21 Plaisant Grand Ota tamagawa 3,057,630 3,241,021 3,180,000 Nursing care 3,175.15 80 80 100.0% 81.3% 181 65,618 9,932 55,686 4.3% 3.7%

H-22 Tsukui Sun-shine Machida 6,934,600 7,187,829 7,070,000 Nursing care 15,553.33 348 348 100.0% (Undisclosed) 153 142,469 31,883 110,586 4.9% 3.8%

H-23 Serabi Ebisu 1,690,000 1,720,732 1,700,000 Nursing care 1,557.73 34 34 100.0% 85.3% 59 12,169 967 11,202 4.5% 4.1%

H-24 Arute Ishiyagawa 1,061,000 1,201,313 1,410,000Nursing care

(with Group Home)3,444.81

54

1864

18100.0%

100.0%

100.0%59 14,118 6,670 7,447 8.2% 4.3%

Subtotal / Average 54,128,230 54,378,385 55,243,000 155,644.00 2,641 3,080 100.0%94.0%／

94.0％(4) 1,424,419 407,298 1,017,121 5.6% 4.0%

Grand total / Average 233,251,311 233,496,342 273,676,000 488,010.23 6,408,595 1,391,292 5,017,303 5.6% 4.4%


Note 1: About “Facility Type”, “Nursing care” shows Private Senior homes for the elderly (with nursing care), “Residential” shows Private Senior homes for the elderly (residential) and “Serviced housing” shows Serviced housing for the elderly.

Note 2: “Actual Occupancy Rate (based on end-tenants)” = Number of residents / number of rooms. “Actual Occupancy Rate” is based on documents from operators but that of “Granda Mondo Yakujin”” Tsukui Sun-shine Machida” aren’t disclosed

because KDR isn’t admitted to disclose from the operator. If “Actual Occupancy Rate” is over 100.0% by calculation, it is written as 100.0%.

Note 3: “Utilization Rate” = Total amount of users / Extended number of capacity in a month. “Utilization Rate” is based on documents from operators.

Note 4: Average Actual Occupancy Rate is 94.0%, and Average Utilization Rate is 94.0% in the above facility type classification.


financial results for the period ended july 2019 (15 fiscal period) · 2019. 9. 13. · financial...

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